The claimant, as trustee for the deceased’s insolvent estate, sought a declaration that a transfer of the deceased’s share in property made by the executors was void as being at an undervalue. The property was subject to a right of occupation in favour of one of the purchaser, one of the defendants, and therefore reduced … Continue reading Williams v Lawrence and Another: ChD 28 Jul 2011
Parties contractual freedom to be respected A clause in a debenture gave a charge which provided that the chargor should not: ‘deal with its book or other debts or securities for money otherwise than in the ordinary course of getting in and realising the same which expression shall not authorise the selling, factoring or discounting … Continue reading In re Brightlife Ltd: ChD 1987
When a licence is really a tenancy The document signed by the occupier stated that she understood that she had been given a licence, and that she understood that she had not been granted a tenancy protected under the Rent Acts. Exclusive occupation was in fact granted. Held: This was a tenancy not a licence. … Continue reading Street v Mountford: HL 6 Mar 1985
(Orse In Re HIH Casualty and General Insurance Ltd)HIH, an Australian Insurance company, became insolvent. An order was sought for the collection and remission of it assets in England under a letter of request from the Australia Court. Held: Once it was accepted that an English court may order the liquidator here to remit funds … Continue reading McGrath and others v Riddell and others: HL 9 Apr 2008
The bankrupt renewed his request for permission to appeal against a refusal to adjourn his public examination in bankruptcy. The court had allowed a private examination so as not to prejudice pending criminal proceedings in Germany. Held: The court had power to order the hearing to be conducted in private and had done so. A … Continue reading In re Rottmann (a Bankrupt): CA 18 Mar 2009
Former employees had obtained a protective award against the company for failing to consult on the impending redundancies and submitted proofs of debt to the liquidator who sought guidance from the court. The judge had held that since the Act provided only one remedy, the protective awards were not provable. Held: The appeal was allowed. … Continue reading Haine v Secretary of State for Business Enterprise and Regulatory Reform and Another; Day v Haine: CA 11 Jun 2008
The directors of an insurance company had declared a bonus by means of a an account of receipts which failed to deal properly with the risks underwritten. They then sought to have the company wound up voluntarily. Held: The Directors could be ordered to repay the bonuses declared and paid. Where a bonus was decided … Continue reading Re County Marine Insurance Co (Rance’s Case): 1870
The receiver appealed against an order finding that the debtor petitioner was not domiciled here when the order was made. The debtor had a domicile of origin in England, but later acquired on in the Isle of Man. He then acquired a home in Mauritius and left IOM. The creditor said that new home was … Continue reading Barlow Clowes International Ltd and Others v Henwood: CA 23 May 2008
Right of Recovery of Money Paid under Mistake Kleinwort Benson had made payments to a local authority under swap agreements which were thought to be legally enforceable when made. Subsequently, a decision of the House of Lords, (Hazell v. Hammersmith and Fulham) established that such swap agreements were unlawful. Kleinwort Benson then sought restitution of … Continue reading Kleinwort Benson Ltd v Lincoln City Council etc: HL 29 Jul 1998
A waste management licence was property, but public policy required that such licences should not be disclaimable by liquidators. There is a need to preserve responsibilities of those taking such licences. . .
The claimant bankrupt and his mother sought a vesting order under the 1986 Act in respect of the pier at Colwyn Bay and its associated dwelling which had been disclaimed by the trustee as onerous property.
Held: The court had power to hear an . .
. .
The trustee in bankruptcy had retired and an order made for the block transfer of the assets to the new trustee. The bankrupt objected and now appealed against the refusal to set the transfer aside.
Held: Section 303(2) allowed the court to . .
References: Ind Summary 01-Mar-1993 Ratio: Date on which ‘grounds’ must exist for annulment of order. A bankrupt applying to annul an order must establish the grounds for annulment not at the date of the hearing of that application, but rather at the date when the order itself was made. Statutes: Insolvency Act 1986 282(1) Last … Continue reading Re A Debtor (No 68 of 1992); Chd 1 Mar 1993
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The claimant alleged that the two defendants had entered into guarantees in its favour. The court had found that the debt was only due by instalments commencing one year after the initial demand. The second defendant now argued that he was not liable at all. The company whose credit had been guaranteed had been placed … Continue reading FBME Bank Ltd v Elwes and Another: QBD 25 Jul 2012
A voluntary winding up is deemed to take place when the resolution for it was passed. The practice of passing such a resolution to take effect only upon the revocation of an administration order was ineffective. The correct way was for an order regarding the administration to be made but held pending notification of the … Continue reading In Re Norditrack (UK) Ltd: ChD 11 Nov 1999
An administrator appointed under the Act was free to dispose of a company’s assets without first making an application to court for permission, and without first obtaining approval of his proposal from the creditors. The administrator’s role would require difficult and sometimes urgent decisions. Judges: Neuberger J Citations: Times 23-Nov-1999, Gazette 01-Dec-1999 Statutes: Insolvency Act … Continue reading In Re T and D Industries Plc and Another: ChD 23 Nov 1999
An administration order can be made against the opposition of a majority of creditors, if the court were sure that there was a real prospect of the order achieving its purpose. Citations: Times 03-Oct-1997 Statutes: Insolvency Act 1986 8 Jurisdiction: England and Wales Insolvency Updated: 02 February 2022; Ref: scu.89595
The company was incorporated in Delaware. Its main centre of business was within the UK. The company resisted an attempt to wind the company up here.
Held: The English courts had jurisdiction. The company’s contracts were subject to English . .
The court does not have power to order the payment of a liquidator’s costs which had not been properly incurred. The costs of unsuccessful litigation were not recoverable in priority to a secured creditor in priority to the charge. As to rule 7.47(1) of the Rules: ‘But, since the point has been raised and may … Continue reading Mond and Another v Hammond Suddards and Another: CA 15 Jun 1999
Judges: Insolvency and Companies Court Judge Jones Citations: [2020] EWHC 1751 (Ch) Links: Bailii Statutes: Company Directors Disqualification Act 1986 Jurisdiction: England and Wales Company, Commercial Updated: 31 December 2022; Ref: scu.652325
Judges: Mr Justice Laddie Citations: [2000] EWHC 226 (Comm), [2001] 1 BCLC 460 Links: Bailii Statutes: Insolvency Act 1986 Jurisdiction: England and Wales Insolvency, Company Updated: 31 December 2022; Ref: scu.341865
Appeals from refusals to rescind bankruptcy orders. The bankrupts had, after lodging their appeals, persuaded the petitioning creditor and several other creditors to support the application. The first bankrupt was acting as agent in negotiations which if successful would generate a commission which would clear the indebtedness. Held: The court’s rejection of the request had … Continue reading Fitch v The Official Receiver: CA 15 Nov 1995
The trustee in bankruptcy sought to have set aside a charging order made over the bankrupt’s property before the commencement of the insolvency. Held: ‘The principle that property acquired from a debtor (in good faith and without notice of the presentation of a bankruptcy petition) is entitled to retain that property against the trustee in … Continue reading Nationwide Building Society v Wright and Another: CA 29 Jul 2009
Judges: ICC Judge Greenwood Citations: [2022] EWHC 2879 (Ch) Links: Bailii Statutes: Insolvency Act 1986 340 Jurisdiction: England and Wales Insolvency Updated: 20 December 2022; Ref: scu.683410
Judges: Chadwick, Laws, Jonathan Parker LJJ Citations: [2005] EWCA Civ 247, [2005] CP Rep 33, [2006] 1 WLR 2194, [2005] 3 Costs LR 363, [2005] BPIR 454, [2005] 1 All ER 272 Links: Bailii Statutes: Insolvency Act 1986 213 214 Jurisdiction: England and Wales Company, Insolvency Updated: 12 December 2022; Ref: scu.223683
Section 236 extended the power of a liquidator to require from the company’s officers all the documents he would reasonably need in order to fulfil his duties under the Act.Lord Slynn said: ‘The protection for the person called upon to produce documents lies, thus, not in a limitation by category of documents (‘reconstituting the company’s … Continue reading In re British and Commonwealth Holdings plc (Nos 1 and 2): HL 1993
The High Court has the power in an appropriate case to make an order requiring a bankrupt to stay within the jurisdiction. Citations: Times 27-Dec-1995, Ind Summary 29-Jan-1996 Statutes: Insolvency Act 1986 333 Jurisdiction: England and Wales Insolvency Updated: 09 December 2022; Ref: scu.83857
A petitioner’s change of mind and support can found a review or rescission of a bankruptcy order as a change of circumstances. Citations: Gazette 24-Jan-1996, Times 21-Nov-1995, [1996] 1 WLR 242 Statutes: Insolvency Act 1986 375(1) Jurisdiction: England and Wales Insolvency Updated: 09 December 2022; Ref: scu.80579
Rights of contingent creditors to participate in CVA. Judges: His Honour Judge Davis-White QC Citations: [2020] EWHC 1648 (Ch) Links: Bailii Statutes: Insolvency Act 1986 Jurisdiction: England and Wales Insolvency Updated: 09 December 2022; Ref: scu.652125
The rule against double proof is implicit in the Insolvency Act 1986, and ‘remains good law. It is an overarching principle which still applies to insolvency, and nothing in Stein v Blake [1996] AC 243 calls it into question.’ Judges: Neuberger J Citations: [2000] BPIR 456 Jurisdiction: England and Wales Cited by: Cited – In … Continue reading In re Glen Express Ltd: ChD 2000
Short but somewhat difficult point under the provisions governing the vesting of disclaimed property of a bankrupt’s estate under section 320 of the Insolvency Act 1986 Judges: Roth J Citations: [2011] 45 EG 96 (CS),, [2012] 2 EG 68, [2011] EWHC 2829 (Ch) Links: Bailii Jurisdiction: England and Wales Land, Insolvency Updated: 09 December 2022; … Continue reading Fenland District Council v Sheppard and Others: ChD 3 Nov 2011
In appointing the administrators, the wrong form had been used. The court was asked to use its powers to cure the mistake. The failure to file the correct form was overlooked, with the result that one of the prerequisites of an appointment taking effect under paragraph 31 remained unsatisfied. However, the administration was carried on … Continue reading In re G-Tech Construction Limited: ChD 29 Sep 2005
Two shareholders held more than 90% of the issued shares of the company. To get rid of the holder of the remaining shares, they incorporated another company for the purpose of acquiring all the shares of the company. The acquiring company offered to purchase the company’s shares at a proper value. The majority shareholders accepted … Continue reading Re Bugle Press Ltd: ChD 1961
Allegation that the payment of dividends was in breach of Part 23 of the 2006 Act. The direcors had signed the necessary certificate as to solvency before resolving to reduce the company capital and paying a dividend. Held: When making such a statement, the directors were not being asked what would be the position if … Continue reading BTI 2014 Llc v Sequana Sa and Others: ChD 11 Jul 2016
The Commissioners claim was founded in an alleged conspiracy from a ‘missing trader intra-community fraud’ amounting to andpound;96 million. Held: Section 423 had extra territorial effect. Judges: David Richards J Citations: [2010] EWHC 1799 (Ch), [2011] BPIR 59 Links: Bailii Statutes: Insolvency Act 1986 423 Jurisdiction: England and Wales Citing: Cited – Regalway Care Ltd … Continue reading HM Revenue and Customs v Begum and Others: ChD 15 Jul 2010
The Revenue sought the defendant’s liquidation, challenging the sum fixed to be due by the chairman of the meeting and the football rules which gave preference to football debts over those of others. The dispute was as to treament of receipts for players’ image and associated rights. They were paid into discretionary trust funds, and … Continue reading HMRC v Portsmouth City Football Club Ltd and Others: ChD 5 Aug 2010
The bankrupt wished to discharge his bankruptcy debt, but challenged the trustee’s fees. Held: The court approved application of the Practice Statement 2004.Proudman J said: ‘The court’s task is to balance all the various criteria, resolving any conflict between them arising in the particular case, in order to arrive at the proper level of remuneration. … Continue reading Hunt v Yearwood-Grazette: ChD 7 Apr 2009
The claimant sued for breach of trust. The action was re-instated after being struck out for want of prosecution, but in the meantime the defendant had been made bankrupt and then discharged from bankruptcy. An order for costs was then made which the claimant now sought to enforce. Held: The possibility of a future costs … Continue reading Glenister v Rowe: CA 21 Apr 1999
Appeal against refusal to order strike out of claim as abuse of process. Citations: [1999] EWCA Civ 1047 Statutes: Insolvency Act 1986 220(1) Jurisdiction: England and Wales Company, Insolvency Updated: 05 December 2022; Ref: scu.145962
When considering whether a breach went to the root of a contract, an associated contract could be split off, even though it would not be split off for insolvency purposes when asking whether a transaction was at an undervalue. Judges: Morritt LJ, Lord Woolf MR Citations: Times 30-Mar-1999, [1999] BCC 557, [1999] EWCA Civ 1007, … Continue reading Phillips (Liquidator of A J Bekhor and Co) and Another v Brewin Dolphin Bell Lawrie Limited and Another: CA 17 Mar 1999
Having waived his right to a dividend under a voluntary arrangement, a creditor could not object to its later variation to include other creditors, despite an absence of explicit power in the deed for this purpose. Waiver should have been made explicit. Citations: Times 14-Apr-1999, [1999] EWCA Civ 1039, [1999] 3 All ER 72 Statutes: … Continue reading Raja v Rubin and Another: CA 19 Mar 1999
Transfer of Undertakings The appeal is one in which no party other than the Appellant was represented. That representative, although experienced in the employment law field, is not a qualified lawyer. No authority was cited to the EAT, and the decision is one which should be treated with care. However the EAT held that the … Continue reading Noble v Box and Others (Transfer of Undertakings): EAT 29 Mar 2021
Judges: Simon Brown LJ Citations: [2007] 1 WLR 2102 Statutes: Insolvency Act 1986 216 208 Jurisdiction: England and Wales Insolvency Updated: 04 December 2022; Ref: scu.263954
A person who challenges a bankrupt’s trustee’s conduct under section 303 must show that the trustee is acting ‘in bad faith or so perversely that no trustee properly advised or properly instructing himself could so have acted, alternatively if he has acted fraudulently or in a manner so unreasonable and absurd that no reasonable trustee … Continue reading Osborne v Cole: 1999
These applications raise the question of whether the court has the power under section 236(3) of the IA 1986 to require persons resident in the EU to produce books and papers and an account of their dealings with a company being compulsorily wound up in England and Wales. Judges: Sir Geoffrey Vos Citations: [2020] EWHC … Continue reading Re Akkurate Ltd: ChD 4 Jun 2020
Liquidators of the company brought proceedings alleging fraudulent trading and trading whilst insolvent by its former directors. An application was made for an in-time application for an extension of time for disclosure. Held: The Court should scrutinise an application for extension more rigorously than before the Jackson reforms and must firmly discourage any easy assumption … Continue reading Atrium Traing Services Ltd; Smailes and Another v McNally and Others: ChD 27 Sep 2013
False Judges: Norris J Citations: [2012] EWHC 63 (Ch) Links: Bailii Statutes: Insolvency Act 1986 Jurisdiction: England and Wales Insolvency, Trusts Updated: 30 November 2022; Ref: scu.450456
The court heard appeal from an Order granting the applicant, the German administrator of Phoenix Kapitaldienst GmbH, recognition under the common law and authority to exercise the powers afforded to licensed insolvency practitioners under the Insolvency Act 1986. The Recognition Order was made on a without notice application. Judges: Proudman J Citations: [2012] EWHC 62 … Continue reading Schmitt v Deichmann and Others: ChD 23 Jan 2012
An Industrial and Provident Societies Act society is unregistered and is therefore not a company for the purposes of s40. Had that been intended express statutory provision would have been made. Judges: Hague QC J Citations: Times 25-May-1993, Gazette 01-Sep-1993, [1993] BCC 410 Statutes: Insolvency Act 1986 40 251, Industrial and Provident Societies Act 1965, … Continue reading In Re Devon and Somerset Farmers Ltd: ChD 25 May 1993
For identifying whether a declaration of trust in favour of an employees’ pension scheme was preferential, the test was by reference to the trustees collectively. This was so under the section despite the close identity of the trustees with the directors. Citations: Times 14-Jan-1999 Statutes: Insolvency Act 1986 239 435(5)(b) Jurisdiction: England and Wales Insolvency … Continue reading In Re Thirty-Eight Building Ltd: ChD 14 Jan 1999
Liquidator’s appeal from strike out of allegation of transactions by directors at undervalue. Held: The appeal failed. Citations: [2013] EWCA Civ 1408 Links: Bailii Statutes: Insolvency Act 1986 Jurisdiction: England and Wales Insolvency Updated: 26 November 2022; Ref: scu.518035
On an application for a winding up order, the court accepted undertakings on the basis of which the Secretary of State sought and was given leave to withdraw his petition. Judges: Neuberger J Citations: Unreported, 16th September 2003 Jurisdiction: England and Wales Cited by: Cited – In the Matter of the Supporting Link; In the … Continue reading Re Easy-Dial Ltd: 16 Sep 2003
The court accepted undertakings with regard to the conduct of a franchised vehicle-leasing broker. The Secretary of State consented to the order. Judges: Park J Citations: Unreported, 21 February 2002 Jurisdiction: England and Wales Cited by: Cited – In the Matter of the Supporting Link; In the Matter of the Insolvency Act 1986 ChD 19-Mar-2004 … Continue reading Re Vehicle Options Ltd: 21 Feb 2002
Applicant’s application for an order under s.423 of the Insolvency Act 1986 to set aside the Declaration of Trust in respect of the Property which he maintains was entered into for the purpose of putting assets beyond the reach of creditors. Judges: ICC Judge Barber Citations: [2022] EWHC 2204 (Ch) Links: Bailii Statutes: Insolvency Act … Continue reading Allen v Hurst and Others: ChD 26 Aug 2022
The appellant challenged a formal statutory demand which had led to his bankruptcy. The demand had included the anticipated cost of realising the charged property, and also had been inflated to allow for extra costs of dealing the appellant who was perceived to be recalcitrant and unco-operative. Held: The statutory demand could only include sums … Continue reading Owo-Samson v Barclays Bank Plc, Boyden: CA 21 May 2003
Application by the Company and its liquidator seeking declarations in relation to certain payments, pursuant to section 212 of the Insolvency Act 1986 and consequential orders against the First Respondent and the Second Respondent, both of whom were directors and shareholders of the Company. Judges: Insolvency and Companies Court Judge Burton Citations: [2021] EWHC 1006 … Continue reading Baker (Liquidator of TMG Brokers Limited) v Staines and Another: ChD 23 Apr 2021
Liquidators sought production of documents pursuant to sections 235 and 236 of the Insolvency Act 1986 from the accountants of the company for which the liquidators were appointed, Citations: [2014] EWHC 1134 (Ch) Links: Bailii Jurisdiction: England and Wales Insolvency Updated: 22 November 2022; Ref: scu.535477
Citations: [2007] EWCA Civ 1262 Links: Bailii Statutes: Insolvency Act 1986 112(2) Jurisdiction: England and Wales Insolvency Updated: 22 November 2022; Ref: scu.261611
The claimant sought judicial review of the respondent’s decision that he was liable, after his discharge from bankruptcy, to suffer deductions from his benefits of sums to repay an overpayment of benefit incurred before his bankruptcy. Held: The respondent’s claim under section 71(1) was a bankruptcy debt, and as such was subject to release on … Continue reading Balding, Regina (on the Application of) v Secretary of State for Work and Pensions: Admn 3 Apr 2007
An action by a company under a shareholder’s agreement was compromised. The other shareholder now sought to commence an action against the party in breach for his personal losses. The defendant argued that the company’s compromise was binding also against the other shareholder. Held: The company had become obliged to compromise the claim by the … Continue reading Giles v Rhind: CA 17 Oct 2002
Application for a Norwich Pharmacal order against a financial institution or a financial services provider known, for the purpose of these proceedings as ‘MM’, relating to a claim that the applicant, known as ‘AA’, has against her former husband, known as ‘XY’. Judges: Mr Justice Sweeting Citations: [2022] EWHC 2627 (KB) Links: Bailii Statutes: Insolvency … Continue reading AA v JJ: KBD 29 Jul 2022
The bankrupt had received his discharge from the bankruptcy and the debts associated. After the discharge he received a statutory demand from the trustees of a pension fund claiming sums from him alleging his dishonest breach of trust. He replied by saying that he had been discharged. Held: To constitute a ‘fraudulent breach of trust’ … Continue reading Woodland-Ferrari v UCL Group Retirement Benefits Scheme: ChD 5 Jul 2002
Citations: [2004] EWCA Civ 1761 Links: Bailii Statutes: Insolvency Act 1986 263(3) Jurisdiction: England and Wales Insolvency Updated: 14 November 2022; Ref: scu.220658
An Insolvency Court has the power to order a foreign non-party company to produce documents concerning foreign business despite the usual rule. Citations: Times 20-Dec-1997 Statutes: Insolvency Act 1986 236 Jurisdiction: England and Wales Insolvency Updated: 13 November 2022; Ref: scu.82061
A bankrupt’s present entitlement to compel payment of pension benefits fell to be included in the assessment of his income within the meaning of section 310(7) of the Insolvency Act. Judges: Bernard Livesey QC Citations: [2012] EWHC 909 (Ch), [2012] 1 WLR 3559, [2012] BPIR 621, [2012] WLR(D) 115, [2012] 3 All ER 1028 Links: … Continue reading Raithatha v Williamson: ChD 4 Apr 2012
The Secretary of State may perfectly properly refuse to accept offered undertakings and instead decide to prosecute company directors under the Act, even though though the terms offered were intended to give equivalent effect. The purpose of the Act’s jurisdiction is to improve the standard of company directors, and the disqualification procedure has a prohibitory … Continue reading In the Matter of Blackspur Group Plc; Secretary of State for Trade and Industry v Davies; Thomas; Thompson; Andrew: CA 19 Nov 1997
This appeal raises two closely related questions of law: whether purported execution of a foreign judgment registered in the High Court pursuant to the terms of the Lugano Convention can be execution issued in respect of the judgment debt, for the purposes of section 268(1)(b) of the Insolvency Act 1986, if the execution occurred before … Continue reading Islandsbanki Hf and Others v Stanford: CA 2 Apr 2020
The Secretary of State sought company director disqualification orders. The defendants challenged the administrative receivership, saying that the appointment of the administrative receiver was invalid, and hence that the conditions of section 6 were not satisfied and the Secretary of State was not entitled to rely on the section as the basis for the disqualification … Continue reading Secretary of State for Trade and Industry v Jabble and Others: CA 22 Jul 1997
Judges: ICC Judge Barber Citations: [2022] EWHC 2649 (Ch) Links: Bailii Statutes: Insolvency Act 1986 423 Jurisdiction: England and Wales Insolvency Updated: 09 November 2022; Ref: scu.682223
Citations: [2022] EWHC 2644 (Ch) Links: Bailii Statutes: Insolvency Act 1986 239 Jurisdiction: England and Wales Insolvency Updated: 07 November 2022; Ref: scu.681979
The parties had agreed to an ancillary relief order on their divorce. The husband was made bankrupt without having paid the lump sum agreed. The former wife and now claimant had received no dividend. Debts which were not provable in the bankruptcy are not released: they are untouched by the process. The former husband now … Continue reading McRoberts v McRoberts: ChD 1 Nov 2012
An adjudication of a building dispute under the Insolvency Act, was ‘other proceedings’ within the Act, and therefore before such steps were taken against a company in administration, the applicant had first to obtain leave from the court. Citations: Times 29-Jun-1999 Statutes: Housing Grants Construction and Regeneration Act 1996, Insolvency Act 1986 11(3) Jurisdiction: England … Continue reading A Straume (UK) Ltd v Bradlor Developments Ltd: ChD 29 Jun 1999
A solicitor appealed against an order requiring him to contribute to the costs of Mareva injunction applied for on behalf of his bankrupt client. Held: Solicitors were not liable in costs personally for starting proceedings on behalf of a bankrupt. A bankrupt has power to instruct solicitor to commence proceedings. Waller LJGibson LJ said: ‘s.306 … Continue reading Nelson v Nelson: CA 6 Dec 1996
Reasons for four companies being wound up in the public interest. Judges: ICC Judge Barber Citations: [2022] EWHC 2734 (Ch) Links: Bailii Statutes: Insolvency Act 1986124A Jurisdiction: England and Wales Insolvency Updated: 03 November 2022; Ref: scu.682272
(Opinion) The bank sought production of a statutory demand issued against it by the defendant. It was said to have been served by misplaced by them, but denied that it had any valid basis. The defender alleged fraud but had not given any justification for his assertions or claim. Held: ‘the defender’s position in this … Continue reading The Royal Bank of Scotland Plc v Hill: SCS 3 Jul 2012
The official receiver began director disqualification proceedings, but before the proceedings commenced, the company was wound up. Where, on an application for the disqualification of a director, the official receiver and the Secretary of State became aware that the company had in fact already been dissolved, the normal course would be to transfer the proceedings … Continue reading Re NP Engineering and Security Products Ltd; Official Receiver and Another v Pafundo and Another: CA 22 Oct 1996
The company had appointed administrators. They were later discharged in the belief that the company was solvent. This proved incorrect, and on a creditor’s winding up petition, new interim receivers were appointed. On the winding up, liquidators were appointed, who now sought clarification of the status of charges over the company’s assets in favour of … Continue reading Re MK Airlines Ltd: ChD 26 Apr 2012
The Secretary of State had presented a winding up petition on public interest grounds against a company carrying on an illegal lottery. Held: The court refused the application of the Secretary of State for the appointment of a provisional liquidator; instead he granted injunctions. It was necessary to procure the cessation of the company’s business … Continue reading In Re Senator Hanseatische Verwaltungsgesellschaft Mbh and Another: CA 30 Jul 1996
The company was in liquidation. Terence Venables, who had owned the shares, had taken an assignment of a cause of action against the football club. The court had set aside that assignment, and removed the liquidator. Venables now appealed saying that the court had been wrong to intervene. Held: The appeal succeeded in part. The … Continue reading In Re Edennote Ltd; Tottenham Hotspur plc v Ryman: CA 21 May 1996
Creditor’s application for annulment of bankruptcy Judges: Judge Agnello KC Deputy Insolvency and Companies Court Citations: [2022] EWHC 2683 (Ch) Links: Bailii Statutes: Insolvency Act 1986 282(1)(a) Jurisdiction: England and Wales Insolvency Updated: 31 October 2022; Ref: scu.682226
Disqualification depends on conduct of director at insolvency not hearing. Citations: Times 24-Nov-1994 Statutes: Company Directors Disqualification Act 1986 6(1) Jurisdiction: England and Wales Company Updated: 27 October 2022; Ref: scu.89085
Advertisement of petition was restrained where it was of a solvent company for public interest purposes. Citations: Gazette 22-Feb-1995 Statutes: Insolvency Act 1986 124A Jurisdiction: England and Wales Company Updated: 27 October 2022; Ref: scu.81812
Peter Gibson LJ said: ‘In s.217(1)(b) knowledge that it is a crime is required.’ Judges: Peter Gibson LJ, Ralph Gibson LJ Citations: [1994] 1 BCLC 637 Statutes: Insolvency Act 1986 217 Jurisdiction: England and Wales Cited by: Cited – It’s A Wrap (UK) Ltd v Gula and Another ChD 16-Sep-2005 The defendant company directors were … Continue reading Thorne v Silverleaf: CA 1994
A stay of execution of an order against matrimonial assets was not defeated by bankruptcy. As to the interplay of the Insolvency Rules and matrimonial proceedings. Balcombe LJ said: ‘I cannot leave this case without saying something about the effect of r 12.3 of the Insolvency Rules 1986. Before those rules came into force orders … Continue reading Woodley v Woodley (2): CA 12 Apr 1993
Transcripts of Insolvency examinations need not be disclosed to defendant, if they were disclosed to the Serious Fraud Office. Citations: Independent 09-Apr-1993, Independent 14-Apr-1993 Statutes: Insolvency Act 1986 236 Jurisdiction: England and Wales Insolvency, Criminal Practice Updated: 26 October 2022; Ref: scu.85795
The administrators of a company are deemed to have accepted the employees who had been kept on after 14 days. A letter from them denying that they would accept them as employees, was insufficient to prevent adoption of the contracts. Citations: Independent 22-Mar-1994, Gazette 08-Jun-1994, Gazette 20-Apr-1994, Times 01-Mar-1994, Ind Summary 14-Mar-1994 Statutes: Insolvency Act … Continue reading Powdrill and Another v Watson and Another: CA 1 Mar 1994
Money paid at same time as charge delivered not exempt. Citations: Times 03-Jun-1993 Statutes: Insolvency Act 1986 245 (2) Jurisdiction: England and Wales Insolvency Updated: 26 October 2022; Ref: scu.84833
Sheriff’s failure to gain access meant that he had failed to execute the writ of fieri facias. Failure to serve writ of fieri facias is not merely a formal defect or irregularity. Citations: Ind Summary 13-Sep-1993, Times 19-Jul-1993 Statutes: Insolvency Act 1986 268(1)(b) Jurisdiction: England and Wales Litigation Practice Updated: 26 October 2022; Ref: scu.81660
Exclusive Dutch jurisdiction clause stopped a s234 order for vehicles.Receivers bound by exclusive jurisdiction clause – no order for delivery up. Citations: Times 19-Jan-1994, Ind Summary 31-Jan-1994 Statutes: Insolvency Act 1986 234 Jurisdiction: England and Wales Insolvency Updated: 26 October 2022; Ref: scu.82000
The word ‘and’ in sections 423(2)(a) and 423(2)(b) is to be read conjunctively not disjunctively. Section 238(3) is to be interpreted as requiring restoration of the former position ‘as far as possible’ or ‘as far as practicable’, and that accordingly subsequent events were not an absolute bar against setting aside the sale. Nourse LJ: ‘The … Continue reading Chohan v Saggar and Another: CA 27 Dec 1993
The liquidator had sought to set aside a transfer of company property as having been made at an undervalue. The defence was that the buyer had assumed some of the company’s debt in addition, and in effect that it was a preference on other creditors. The court had then issued an interlocutor in effect debarring … Continue reading Henderson v 3052775 Nova Scotia Ltd: HL 10 May 2006
The claimant sought damages against its former directors for negligence and breach of fiduciary duty. The defendants asked that the claims be struck out. Held: It was no longer good law that directors might leave the conduct of the company’s business to competent management. Though section 727 might give relief to directors who had been … Continue reading Equitable Life Assurance Society v Bowley and others: ComC 17 Oct 2003
The duty on company officers to disclose assets to the liquidator went beyond a duty to respond to requests, and created a positive duty to inform him of assets. Nor was the obligation to deliver up a once off event, but it was a duty continuing from time to time during the insolvency. Citations: Times … Continue reading Regina v McCredie; Regina v French: CACD 5 Oct 1999
The offence of acting as a company director whilst being an undischarged bankrupt is an absolute offence. Citations: Gazette 26-Jan-1994, Times 25-Nov-1993, [1994] 99 Cr App R 385 Statutes: Company Directors Disqualification Act 1986 11(1) Jurisdiction: England and Wales Cited by: Cited – Regina v Doring CACD 24-Jun-2002 The defendant was charged with acting as … Continue reading Regina v Brockley: CACD 25 Nov 1993
Judges: Sir William Blackburne Citations: [2013] EWHC 685 (Ch) Links: Bailii Statutes: Insolvency Act 1986 423 Jurisdiction: England and Wales Insolvency Updated: 24 October 2022; Ref: scu.472077
A judgment creditor, applied for an order requiring Mr Brewster, his judgment debtor, to elect to draw down a lump sum from his pension in order to enable the judgment creditor to obtain a third party debt order against the pension trustees. Held: Mr Moss granted an injunction under section 37(1) of the 1981 Act … Continue reading Blight and Others v Brewster: ChD 9 Feb 2012
The applicant had been subject to company director disqualification proceedings. Eventually he gave an undertaking not to act as a company director, but then succeeded at the ECHR in a complaint of delay. He now sought release from his undertaking in the light of the ECHR judgment. Held: The appeal was dismissed. The decision of … Continue reading Eastaway v Secretary of State for Trade and Industry: CA 10 May 2007
EAT Deposit ordered. Order lost in post due to the Claimant putting wrong post-code on ET1. Review. Distinguishing Judgments from Orders. Strike-out. Extending time. Judges: His Honour Peter Clark Citations: [2005] UKEAT 0318 – 05 – 2907, UKEAT/0319/05/TM, UKEAT/0318/05/TM, [2005] ICR 1647, UKEAT/0320/05/TM, [2005] IRLR 836 Links: Bailii, EATn Statutes: Employment Tribunal Rules 2004 20(1) … Continue reading Sodexho Ltd v Gibbons: EAT 14 Jul 2005