The court considered the relevance of a statutory limitation period in relation to applications to set aside transactions as being at an undervalue or as voidable preferences under section 238 to 241 of the 1986 Act. Applications to set aside transactions under the sections are generally actions on a specialty within the meaning of section … Continue reading Re Priory Garage (Walthamstow) Limited: ChD 2001
What is required of the court in applying section 335A(3) is, in effect, a value judgment. The court must look at all the circumstances and conclude whether or not they are exceptional. That process, he considered, left ‘very little scope for the interference by an appellate court’. The court here found a reason to suspend … Continue reading Claughton v Charalambous: 1998
First Division, Inner House, Court of Session – allegation of sale at an undervalue. The liquidator appealed a finding that as a speedy sale was required the sale price was proper. Held: The reclaiming notice was allowed. The sale of the company’s main place of business would not lead to a recovery. A person, once … Continue reading Liquidators of Grampian Maclennan’s Distribution Services Ltd Reclaiming Motion By, v Carnbroe Estates Ltd: SCS 23 Jan 2018
‘This appeal concerns the Scots law of gratuitous alienations on insolvency. It raises three principal questions. First, there is a question as to the interpretation of the term ‘adequate consideration’ in section 242(4)(b) of the Insolvency Act 1986. Secondly, there is the question whether the Inner House was entitled to interfere with the Lord Ordinary’s … Continue reading MacDonald and Another v Carnbroe Estates Ltd: SC 4 Dec 2019
(Outer House) Allegation of sale at an undervalue – Carnbroe had established that the sale of the Property was made for adequate consideration. Lord Woolman recorded the submission which counsel made on behalf of Carnbroe that Grampian was fighting for its survival and that Mr Quinn had to make a quick decision. He continued: ‘While … Continue reading Macdonald and Others v Carnbroe Estates Ltd: SCS 18 Jan 2017
Lord Cullen spoke of the meaning of ‘adequate consideration’ in section 242 of the 1986 Act: ‘In considering whether alienation was made for ‘adequate consideration’, I do not take the view that it is necessary for the defender to establish that the consideration for the alienation was the best which could have been obtained in … Continue reading Lafferty Construction Ltd v McCombe: SCS 1994
An employee claimed re-instatement following alleged unfair selection for redundancy by an administrator. Held: The effect of the 1986 Act was not that proceedings brought against a company in administration without consent or the permission of the court were a nullity, but only that they were liable to be stayed as other proceedings in section … Continue reading Carr v British International Helicopter: EAT 1993
Applications were made for the removal of a liquidator from several appointments in corporate nd individual insolvencies. He had been a partner in a firm and that had ceased in a way which left it impossible to work with his former partners to perform his duties. Held: The appointments were personal, and the only practical … Continue reading In Re A and C Supplies Limited: ChD 17 Oct 1997
The defendant appeal against a conviction for cheating the revenue after the use of evidence obtained against him by compulsion in investigations under the Insolvency Act. Held: The information obtained in an investigation would normally be considered confidential, but had been used to obtain warrants and to lay informations: ‘It is self-evidently in the public … Continue reading Regina v Brady: CACD 22 Jun 2004
Two of the company’s contributories asked be added to the list for the purpose of obtaining a 7 day adjournment of the hearing of the petition so as to give them time to consider whether they wished to ask for substitution. Held: An ordinary individual or company cannot be substituted as petitioner on a Secretary … Continue reading Xyllyx PLC (No1): ChD 1992
The section gives the court jurisdiction to make an administration order if it ‘(a) is satisfied that a company is or is likely to become unable to pay its debts’ and ‘(b) considers that the making of an order . . would be likely to achieve’ one or more of the purposes specified in s8(3). … Continue reading In re Harris Simons Construction Limited: ChD 1989
Serious Fraud Office can still require production of Insolvency Act 1986 interviews taken before charge from the liquidator even after he has been charged.. Citations: Times 27-Apr-1993, Independent 08-Apr-1993 Statutes: Criminal Justice Act 1987 2, Insolvency Act 1986 236 Jurisdiction: England and Wales Criminal Practice, Insolvency Updated: 05 May 2022; Ref: scu.85729
A tenancy granted by an insolvent farmer to his wife was set aside because of additional benefits which were granted. The tenancy was held to have been granted at an undervalue, even though the court was unable precisely to measure the value of the benefits granted. ‘In applying section 423(1)(c) to the facts of the … Continue reading Agricultural Mortgage Corporation Plc v Woodward and Another: CA 30 May 1994
Judges: Deputy Insolvency and Companies Court Judge Agnello QC Citations: [2018] EWHC 3572 (Ch) Links: Bailii Statutes: Insolvency Act 1986 303 Jurisdiction: England and Wales Cited by: See Also – Baxendale-Walker v Irwin Mitchell Llp and Others 3423 ChD 20-Dec-2018 Judgment in application by fifth defendant for a limited civil restraint order. . . Lists … Continue reading Baxendale-Walker v Irwin Mitchell Llp and Others 3572: ChD 20 Dec 2018
The bank’s common law right of set-off was affirmed. The bank’s appeal succeeded. The application of section 323 is mandatory in the sense that it cannot be excluded by prior agreement of the parties. Citations: [1972] AC 785 Statutes: Insolvency Act 1986 323(2) Jurisdiction: England and Wales Citing: Appeal from – Halesowen Presswork and Assemblies … Continue reading National Westminster Bank Ltd v Halesowen Presswork and Assemblies Ltd: HL 1972
H had transferred his interest in the jointly owned matrimonial home to W for her promise to have sole liability for the mortgage debt. Nearly a year later her divorce claim for capital provision was dismissed by consent on the basis that H had already transferred his interests to W. H was bankrupted, and his … Continue reading Re Kumar (A Bankrupt), ex parte Lewis v Kumar: 1993
A prerequisite to making an administration order under section 8(1) is that the court considers making such an order ‘would be likely to achieve’ one of the statutory purposes. Held: This required the court to be satisfied there is a ‘prospect sufficiently likely in the light of all the other circumstances of the case to … Continue reading In re Primlaks (UK) Ltd: 1989
Damages for misrepresentation due to share purchaser not due to him as member. Citations: Times 27-May-1996 Statutes: Insolvency Act 1986 74(2)(f) Jurisdiction: England and Wales Company Updated: 28 April 2022; Ref: scu.89384
Witness to Department of Trade and Industry on Company affairs to be given notice before evidence released. Citations: Times 05-Jul-1996 Statutes: Companies Act 1985 432, Insolvency Act 1986 236 Jurisdiction: England and Wales Company Updated: 28 April 2022; Ref: scu.89388
The court examined the extent of the Judge’s discretion on hearing an application to set aside a statutory demand. When property was valued for the purposes of a statutory demand, it should be as on a forced sale. A ‘forced sale’ was taken as one requiring completion within four months. The judge, in dealing with … Continue reading Platts v Western Trust and Savings Ltd: CA 9 Jun 1993
Section 252 of the Insolvency Act 1986 does not stop a Landlord executing distress though interim order in force. Citations: Times 10-Jun-1993 Statutes: Insolvency Act 1986 252(2) Jurisdiction: England and Wales Landlord and Tenant Updated: 28 April 2022; Ref: scu.83577
A voluntary arrangement can be offered where only one creditor may stay bankruptcy proceedings. Rejection of less than the full amount by a petitioning creditor was not necessarily unreasonable. Judges: Mr Timothy Lloyd QC Citations: Times 01-Mar-1994, Gazette 11-May-1994, [1994] 1WLR 899 Statutes: Insolvency Act 1986 271(3)(c) Jurisdiction: England and Wales Cited by: Cited – … Continue reading In Re A Debtor (No 32 of 1993): ChD 1 Mar 1994
Citations: [2018] EWHC 2141 (Ch) Links: Bailii Statutes: Insolvency Act 1986 304 Jurisdiction: England and Wales Insolvency Updated: 26 April 2022; Ref: scu.621142
Liquidators claim for repayment of sums paid out by company after petition for insolvency Citations: [2018] EWHC 2168 (Ch) Links: Bailii Statutes: Insolvency Act 1986 127 Jurisdiction: England and Wales Insolvency Updated: 26 April 2022; Ref: scu.621141
This application is brought by Brothers Produce Limited and its liquidators for relief following an assignment which was void under s.127 of the Insolvency Act 1986. Citations: [2022] EWHC 291 (Ch) Links: Bailii Statutes: Insolvency Act 1986 127 Jurisdiction: England and Wales Insolvency Updated: 16 April 2022; Ref: scu.672161
Directors of a failed company were not to restart under similar name; strict criteria applied. Citations: Times 19-Dec-1995 Statutes: Insolvency Act 1986 216 Jurisdiction: England and Wales Company Updated: 15 April 2022; Ref: scu.84661
Citations: [2018] ScotCS CSOH – 24 Links: Bailii Statutes: Insolvency Act 1986 212 Jurisdiction: Scotland Insolvency Updated: 14 April 2022; Ref: scu.609349
The court was asked: is it a sufficient ground for refusing to make an income payments order under section 310 of the Insolvency Act 1986 in respect of a bankrupt that sums received under any order will not (or are unlikely to) enable a distribution to be made to the bankrupt’s unsecured creditors? Judges: Newey … Continue reading The Official Receiver v Negus: ChD 16 Dec 2011
Judges: Lord Menzies Citations: [2010] CSOH 115, 2010 GWD 33-684, [2010] ScotCS CSOH – 115, [2011] BCC 174 Links: Bailii Statutes: Insolvency Act 1986 74(3)(e) Jurisdiction: Scotland Scotland, Landlord and Tenant, Insolvency Updated: 12 April 2022; Ref: scu.421614
Judges: Mr Justice Etherton Citations: [2004] EWHC 316 (Ch) Statutes: Insolvency Act 1986 1214, Companies Act 1985 212 Jurisdiction: England and Wales Insolvency, Company Updated: 12 April 2022; Ref: scu.194074
The Official Receiver could not use the powers given to him for the purposes of his insolvency duties to require production of documents form solicitors and accountants, to satisfy duties placed on him by the Secretary of State for the purpose of company director disqualification proceedings. The secretary of state could not ask the Official … Continue reading In re Pantmaenog Timber Co Ltd: CA 25 Jul 2001
Claims under section 212(3) for alleged misfeasance or breach of duties against the Companies’ former liquidators in their respective members voluntary liquidations Judges: Insolvency and Companies Court Judge Burton Citations: [2022] EWHC 632 (Ch) Links: Bailii Statutes: Insolvency Act 1986 212(4) Jurisdiction: England and Wales Insolvency Updated: 12 April 2022; Ref: scu.674645
The debtor and creditors had entered into a individual voluntary arrangement, but the meeting had not been sanctiond by the prior authorisation of the court as required. Despite its continuance for three years, and the parties having acted upon it, the supervisor decided that the appointment had been void. On appeal to the court it … Continue reading Fletcher v Vooght: BC 28 Feb 2000
A football club was not an unregistered company for the purposes of winding-up procedures. Citations: Times 19-Nov-1993 Statutes: Insolvency Act 1986 220 Jurisdiction: England and Wales Insolvency Updated: 10 April 2022; Ref: scu.90410
The forfeiture of a bankrupt’s lease is not an exercise of a security disallowing landlord from proving in the bankruptcy. the right of physical re-entry is neither a ‘security’ nor a ‘remedy’ within the meaning of those provisions, nor does it constitute ‘other proceedings’ or the execution of ‘other legal process’. The present law is … Continue reading Razzaq v Pala: QBD 6 Jun 1997
A court could properly look at the degree of a bankrupt’s behaviour in gambling so as to materially either contribute to or materially increase the extent of his insolvency by gambling or reckless speculation, and if such behaviour was found the defendant could commit the offence. The word materially was intended to apply to either … Continue reading Regina v P: CACD 29 Mar 2000
Company Liquidators have no authority to disclose evidence to creditor. Citations: Times 01-Dec-1993 Statutes: Insolvency Act 1986 236 & 237 Insolvency Updated: 09 April 2022; Ref: scu.83085
A lump sum payable from a pension fund to bankrupt before his discharge was to be treated as income. Where bankrupt had sufficient other income he could be made subject to an income payments order. Citations: Times 03-Aug-1998 Statutes: Insolvency Act 1986 310(7) Jurisdiction: England and Wales Insolvency Updated: 09 April 2022; Ref: scu.82775
The continued ownership of a waste disposal licence was not a bar to the completion of the liquidation of the company provided the liquidator could show ability to comply with the statutory requirements for the licence. Citations: Gazette 06-May-1999 Statutes: Insolvency Act 1986 106(1) 201(2) Jurisdiction: England and Wales Insolvency Updated: 08 April 2022; Ref: … Continue reading In Re Wilmott Trading Ltd: ChD 6 May 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
Administrators may adopt employment contracts without attracting personal liability. Citations: Times 14-Sep-1993 Statutes: Insolvency Act 1986 19-5 Jurisdiction: England and Wales Citing: See Also – Re Paramount Airways Ltd (In Administration) CA 8-Apr-1992 It was said that there had been a transction at an undervalue within section 238. It was given effect by a transfer … Continue reading In Re Paramount Airways Ltd (In Administration): ChD 14 Sep 1993
The Court has no authority to make an order to control how any future liquidator of a company should distribute the assets on insolvency. It is wrong to seek to fetter his acts and discretions in this way. Citations: Times 19-May-1997 Statutes: Insolvency Act 1986 18(3), 14(3) Jurisdiction: England and Wales Insolvency Updated: 08 April … Continue reading In Re Powershore (Trading) Ltd; In Re Homepower Stores Ltd: ChD 19 May 1997
A court has no jurisdiction to make an order which seeks to bind future decisions of future liquidator in favour of group of creditors. Judges: Mr Justice Lightman Citations: Gazette 18-Jun-1997, [1997] 1 WLR 1280 Statutes: Insolvency Act 1986 18(3) 14(3) Jurisdiction: England and Wales Cited by: Cited – In re Luna Metal Products Ltd … Continue reading In Re Powerstore (Trading) Ltd; In Re Homepower Stores Ltd: ChD 18 Jun 1997
The court considered the effect of the doctrine of relation back on a property of which the bankrupt was formerly a joint tenant where the bankrupt had died after the act of bankruptcy but before adjudication. Held: A deceased’s share in property held under a joint tenancy was not caught by an insolvency after the … Continue reading In Re Palmer, Deceased (A Debtor): ChD 25 Mar 1994
The applicants sought leave to proceed in actions against the defendants against whom bankruptcy proceedings were pending. Consent should have been obtained before proceedings were issued, but application was now made nunc pro tunc. Held: The court has a free hand in these situations to do what was right and fair. Leave was granted. Judges: … Continue reading In Re Melinek (A Bankrupt); Bristol & West Building Society v Alexander (The Trustee Of The Property of Back) (A Bankrupt); Melinek (A Bankrupt): ChD 10 Apr 1997
At the date of the bankruptcy the bankrupt was entitled to a pension, payable in the future on his attaining the age of 65 years. He was aged 61 when the bankruptcy order was made, and 64 when it was discharged. The trustee claimed to be entitled to elect under the policy to commute part … Continue reading In Re Landau (A Bankrupt): ChD 1 Dec 1996
Judges: Mrs Justice Falk Citations: [2020] EWHC 2839 (Ch) Links: Bailii Statutes: Insolvency Act 1986 239 Jurisdiction: England and Wales Insolvency Updated: 07 April 2022; Ref: scu.655615
Citations: [2017] EWHC 2610 (Ch) Links: Bailii Statutes: Insolvency Act 1986 112 Jurisdiction: England and Wales Insolvency Updated: 05 April 2022; Ref: scu.605327
Applications for the appointment of a provisional liquidator pending the hearing of various petitions for the winding up of a group of companies, on the public interest ground Judges: Marcus Smith J Citations: [2017] EWHC 3636 (Ch) Links: Bailii Statutes: Insolvency Act 1986 135 Jurisdiction: England and Wales Company, Insolvency Updated: 05 April 2022; Ref: … Continue reading The Secretary of State for Business, Energy and Industrial Strategy v Rigil Kent Acquisitions Ltd and Others: ChD 19 Dec 2017
The section gave the court a jurisdiction to authorise payments to people would be preferred creditors in a winding up. Judges: Lewison J Citations: Times 27-Dec-2006 Statutes: Insolvency Act 1986 18(3) Jurisdiction: England and Wales Citing: Cited – Colchester Estates (Cardiff) v Carlton Industries plc ChD 30-Mar-1984 If a decision of a court has been … Continue reading In re Cromptons Leisure Machines Ltd: ChD 13 Dec 2006
Alleged unlawful preference Judges: Deputy ICC Judge Curl QC Citations: [2022] EWHC 395 (Ch) Links: Bailii Statutes: Insolvency Act 1986 239 Jurisdiction: England and Wales Insolvency Updated: 03 April 2022; Ref: scu.672173
Citations: [2022] EWHC 402 (Ch) Links: Bailii Statutes: Insolvency Act 1986 168(3), Payment Services Regulations 2017 Jurisdiction: England and Wales Insolvency, Financial Services Updated: 02 April 2022; Ref: scu.672157
Liquidators seeking information from directors were allowed to undertake not to disclose any information gathered to the Serious Fraud Office. Such an undertaking having been given a former company director was not able to refuse to answer questions put to him. Citations: Times 01-May-1992, Gazette 01-Jul-1992 Statutes: Insolvency Act 1986 236(2) Jurisdiction: England and Wales … Continue reading Re Arrows Ltd (In Liquidation): Chd 1 Jul 1992
Judges: Deputy Insolvency and Companies Court Judge Agnello QC Citations: [2022] EWHC 202 (Ch) Links: Bailii Statutes: Insolvency Act 1986 212 213 Jurisdiction: England and Wales Insolvency Updated: 29 March 2022; Ref: scu.671908
Judgment on certain preliminary issues Judges: Paul Matthews HHJ Citations: [2017] EWHC 1920 (Ch) Links: Bailii Statutes: Insolvency Act 1986 8127 Jurisdiction: England and Wales Citing: Cited – Hanak v Green CA 1958 A builder was sued for his failure to complete the works he had contracted for. The buider sought a set-off against that … Continue reading Officeserve Technologies Ltd and Another v Anthony-Mike: ChD 28 Jul 2017
By a Part 7 claim, the Respondent to a bankruptcy petition presented by Her Majesty’s Revenue and Customs (‘HMRC’), Emma Hope, seeks to set aside a previous judgment of the High Court, on the ground that the it was obtained as a result of fraudulent misrepresentations. The claim also seeks damages for HMRC’s ‘acts of … Continue reading Hope v Revenue and Customs: ChD 6 Apr 2017
The defendant sought a second adjournment of his application for leave to appeal against summary judgment for $21m with interest in respect of a judgment obtained in Texas. The defendant was said to have given his personal guarantee for the purchase price of goods sold and delivered. Held: The request was rejected. Counsel for the … Continue reading Formosa Plastics Corporation USA v Chauhan and others: CA 6 Apr 1998
Applications regarding disclaimer provisions of the 1986 Act. Judges: John Male QC Citations: [2017] EWHC 605 (Ch), [2017] WLR(D) 281 Links: Bailii, WLRD Statutes: Insolvency Act 1986 315 Jurisdiction: England and Wales Insolvency Updated: 24 March 2022; Ref: scu.581967
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. Citations: Ind Summary 01-Mar-1993 Statutes: Insolvency Act 1986 282(1) Jurisdiction: England … Continue reading Re A Debtor (No 68 of 1992): ChD 1 Mar 1993
The court was asked whether proceedings under section 212 brought by the liquidator against a former director of the company were barred by limitation, having been brought just within 6 years after the resolution for creditors’ voluntary liquidation, but more than 6 years after the last date on which any breach of duty relied on … Continue reading Goldfarb (Liquidator of Eurocruit Europe Ltd) v Poppleton: ChD 21 Jun 2007
The trustee in bankruptcy had taken a charge on the property in 1992 to support the bankruptcy in 1988. He sought to enforce it in 2005. The chargor appealed an order which denied he was protected by limitation. Held: The appeal succeeded. Charges under the 1986 Act were unusual in that they were not preceded … Continue reading Doodes v Gotham, Perry: ChD 17 Nov 2005
Citations: [2007] EWHC 2943 (Ch) Links: Bailii Statutes: Insolvency Act 1986 112 Jurisdiction: England and Wales Insolvency Updated: 09 February 2022; Ref: scu.261960
The bankrupt’s accountants had been paid their fees by standing order. Arrears mounted and the sum was increased. On the bankruptcy, the trustee sought to recover the increased payment. The court considered whether they had been given a preference. Held: The accountants had continued to act, and therefore were not in a better position than … Continue reading Re Ledingham-Smith: ChD 1993
The liquidator sought directions from the court after former employees of the company submitted proofs of debt in respect of protective awards made for the company’s failure to consult on their redundancy before going into liquidation. Held: The Act provided one remedy only for enforcement, and the debts were not provable. At the date of … Continue reading Day v Haine and Another: ChD 19 Oct 2007
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
(Extra Division Inner House) The liquidator sought to have set aside the sale of a substantial hotel with golf courses on the basis that it was at an undervalue, with the buyer being aware of the seller’s potential insolvency. He appealed against a finding that the buyer had also assumed debts sufficient to give full … Continue reading Henderson v Foxworth Investments Ltd and Another: SCS 1 Mar 2013
Misfeasance application Judges: ICC Judge Barber Citations: [2020] EWHC 2473 (Ch) Links: Bailii Statutes: Insolvency Act 1986 212 Jurisdiction: England and Wales Insolvency Updated: 30 January 2022; Ref: scu.654526
Application for annulment of bankruptcies. Held: Though the judgment upon whih the order had originally been made had been obtained by fraud, that did not of itself discharge the bankruptcy. Judges: Robert Ham QC Citations: [2017] EWHC 11 (Ch) Links: Bailii Statutes: Insolvency Act 1986 264 Jurisdiction: England and Wales Insolvency Updated: 29 January 2022; … Continue reading Oraki and Another v Dean and Dean: ChD 11 Jan 2017
A debenture was executed on 24th July 1990. Money earlier advanced by the chargee in anticipation of and in consideration for the debenture, including an advance made on 16th July 1990, had not been made ‘at the same time as’ the creation of the charge for the purposes of section 245(2) of the 1986 Act. … Continue reading Re Shoe Lace Ltd, Power v Sharp Investments Ltd: CA 1993
The court was asked whether section 375 allowed a court to review, rescind or vary an order which was previously made by that court in exercise of its jurisdiction to hear an appeal from a lower court. Arden, Lewison, McCombe LJJ [2016] WLR(D) 632, [2016] EWCA Civ 1159 Bailii, WLRD Insolvency Act 1986 375(1) England … Continue reading Sands (As Trustee In Bankruptcy) v Layne and Another: CA 29 Nov 2016
Applications alleging sales at undervalue by the now insolvent company to its former directors. David Cooke HHJ [2016] EWHC 2176 (Ch) Bailii Insolvency Act 1986 238 England and Wales Insolvency, Company Updated: 22 January 2022; Ref: scu.568895
This was an appeal against a revocation of an approval of an individual voluntray arrangement. The notice to creditors inviting them to attend the meeting had been in an outdated form. Held: The creditir had given suficient evidence of his debt to be allowed to vote at the meeting. The disallowance of the vote was … Continue reading Roberts v Pinnacle Entertainment Limited: ChD 21 Oct 2003
A liquidator applied to discharge an order that had been made against him ex parte under section 234 requiring him to hand over books and records of the company in his possession to administrative receivers. Held: Hoffman J said: ‘It was wrong for the application to be made ex-parte. It is a basic principle of … Continue reading In re First Express Ltd: ChD 1991
Application by the Trustee in Bankruptcy of under section 279(3) of the Insolvency Act 1986 to suspend the date of discharge of Mr. K from his bankruptcy. Miss Penelope Reed QC (Sitting as a Deputy Judge of the Chancery Division) [2013] EWHC 2204 (Ch) Bailii England and Wales Insolvency Updated: 20 January 2022; Ref: scu.514968
The trustee in bankruptcy appealed against an order as to compliance with statutory notices issued by HMRC. The trustee argued that all but one of the orders was made in excess of jurisdiction. Mann J [2016] EWHC 1674 (Ch) Bailii Insolvency Act 1986 303, Finance Act 2008 Sch 36 England and Wales Insolvency, Taxes Management … Continue reading HM Revenue and Customs v Ariel: ChD 8 Jul 2016
It was said that there had been a transction at an undervalue within section 238. It was given effect by a transfer to a bank in Jersey, from which recovery was no sought. The bank claimed that the section did not have extra-territorial effect. Held: The argument failed; the section did not purport to have … Continue reading Re Paramount Airways Ltd (In Administration): CA 8 Apr 1992
Proudman J [2016] EWHC 1536 (Ch) Bailii Insolvency Act 1986 284 England and Wales Insolvency Updated: 18 January 2022; Ref: scu.566241
The insolvent companies administrators sought reduction of alienations by the companies before entering into administration. It was said that their banker lenders had been misled as to the values of secured properties, agreeing to their release leading to losses, and their sale. Held: The appeals failed: ‘The gratuitous nature of the alienations was clearly explained … Continue reading Brown and Another v Stonegale Ltd and Another: SC 22 Jun 2016
Appeal against finding that an assignment of book debts was void, as it had been made after the commencement of the Company’s winding up or, even if that were not the case, should be set aside (a) under section 238 of the Act as a transaction at an undervalue and (b) under section 423 of … Continue reading Barons Bridging Finance 1 Ltd and Others v Barons Finance Ltd: CA 14 Jun 2016
Purle QC HHJ [2016] EWHC 444 (Ch) Bailii Insolvency Act 1986 127 England and Wales Contract, Insolvency Updated: 11 January 2022; Ref: scu.560745
Appeal by the petitioning creditor, National Asset Loan Management Limited (‘NALM’), against the orders of Chief Registrar Baister dated 23rd June 2014, adjourning NALM’s bankruptcy petition and making directions on an application dated 20th June 2014 by the debtor, Mr Cahillane, brought under s.375 of the Insolvency Act 1986 Kevin Prosser QC [2015] EWHC 62 … Continue reading National Asset Loan Management Ltd v Cahillane: ChD 20 Jan 2015
Action by Liquidator against directors for wrongful trading. The court was asked Whether the liquidators had established continued trading causing a loss to company in order to attribute personal liability on the directors. Held: Section 214(3) was intended to impose a high hurdle on the directors, being construed strictly it would require a director seeking … Continue reading Grant and Another v Ralls and Others (Re Ralls Builders Ltd): ChD 11 Feb 2016
The commonwealth Institute, a registered charity, had gone into solvent members’ voluntary winding up, and the court now considered the propriety of passing the funds to a successor charity. David Richards [2014] EWHC 2218 (Ch) Bailii Insolvency Act 1986 112 England and Wales Company, Charity Updated: 09 January 2022; Ref: scu.533808
An application under the Act which was not part of any other proceedings may be made in any division of the High Court. Times 02-May-1994 Insolvency Act 1986 423 England and Wales Insolvency Updated: 09 January 2022; Ref: scu.90018
Deputy Insolvency and Companies Court Judge Kyriakides [2021] EWHC 3393 (Ch) Bailii Insolvency Act 1986 282(1)(a) England and Wales Insolvency Updated: 08 January 2022; Ref: scu.670670
Insolvency and Companies Court Judge Jones [2021] EWHC 3460 (Ch) Bailii Insolvency Act 1986 238 England and Wales Insolvency Updated: 07 January 2022; Ref: scu.670662
Adjourned hearing of an application under Section 236 of the Insolvency Act 1986. Hodge QC HHJ [2015] EWHC 2697 (Ch) Bailii Insolvency Act 1986 236 England and Wales Insolvency Updated: 05 January 2022; Ref: scu.554297
The court was asked whether a notice claiming after-acquired property was served within the statutory time limits by the trustee in bankruptcy of the appellant. Henderson J [2015] EWHC 2826 (Ch) Bailii Insolvency Act 1986 307(1) 309 England and Wales Insolvency Updated: 04 January 2022; Ref: scu.553251
Application by the Liquidator of Pro4Sport Ltd under s 212 of the 1986 Act against Mr Adams the former Director and majority shareholder of Pro4Sport. Behrens HHJ [2015] EWHC 2540 (Ch) Bailii Insolvency Act 1986 212 England and Wales Insolvency Updated: 04 January 2022; Ref: scu.553053
The court was asked whether or not the applicant trustees in bankruptcy of Mr. Tarlochan Singh (‘the bankrupt’) have lost all their rights under the provisions of s. 283A of the Insolvency Act 1986 (‘the Act’) to a particular property. The property was at the date of the bankruptcy registered in the bankrupt’s name. It … Continue reading Sands and Another v Singh and Others: ChD 1 Jun 2015
The companyy’s joint administrator requested orders under section 238 as against various payments made by the Company and for payment of the equivalent sums. George Bompas QC [2015] EWHC 1905 (Ch) Bailii Insolvency Act 1986 238 England and Wales Citing: Cited – Lipkin Gorman (a Firm) v Karpnale Ltd HL 6-Jun-1991 The plaintiff firm of … Continue reading In re Hampton Capital Ltd: ChD 9 Jul 2015
Appeal to the High Court from a decision of a district judge exercising insolvency jurisdiction in the county court on appeal from a decision of the bankruptcy adjudicator raising two fundamental, and apparently novel, questions. The first concerns the evidential burden, if any, resting on an applicant for a bankruptcy order to adduce evidence as … Continue reading The Office of The Bankruptcy Adjudicator and Another v Shaw: ChD 7 Oct 2021
Behrens HHJ [2015] EWHC 1841 (Ch) Bailii Insolvency Act 1986 333 366 England and Wales Insolvency Updated: 01 January 2022; Ref: scu.549485
The applicants were suspected of terrorist associations. Their bank accounts and similar had been frozen. They challenged the Order in Council under which the orders had been made without an opportunity for parliamentary challenge or approval. Held: The Orders must be set aside. ‘It is I think obvious that this procedure does not begin to … Continue reading A, K, M, Q and G v HM Treasury: Admn 24 Apr 2008
Whether non-compliance with requirements of Schedule B1 to the Insolvency Act 1986 (‘Sch. B1’ and ‘the Act’) affected the subsequent validity and/or conduct of the administrations and subsequent liquidations. Insolvency and Companies Court Judge Jones [2021] EWHC 3205 (Ch) Bailii England and Wales Insolvency Updated: 31 December 2021; Ref: scu.670316
The airline was incorporated in Greece but with an office in the UK. It became insolvent leaving a deficit in the UK employee pension scheme. The trustees of the fund sought a secondary insolvency within the UK, and now a reference to the European Court. Held: The Court was now asked what connection must a … Continue reading Olympic Airlines Sa Pension and Life Assurance Scheme, The Trustees of The v Olympic Airlines Sa: SC 29 Apr 2015
Thorpem Kitchin LJJ, Mann J [2011] EWCA Civ 1646 Bailii Insolvency Act 1986 336 England and Wales Family, Insolvency Updated: 22 December 2021; Ref: scu.537425
T and N had exposure to asbestosis claims; these claims were insured by Lloyd’s but on terms that if payments were to be made, T and N should make certain reimbursements to Lloyd’s. T and N then insured with a captive company known as Curzon their liability to make such reimbursements. Lloyd’s called on T … Continue reading T and N Limited, Associated Companies of T and N Ltd (In Administration) v Royal and Sun Alliance Plc, and others: ChD 9 May 2003
A company went into liquidation, being owed substantial sums by another company in the same group, but itself insolvent. A settlement did not include accrued interest, but was claimed to be taxed as if it had, and on an accruals basis. If so, was this an expense properly arising in the insolvency, and payable as … Continue reading Kahn and Another v Commissioners of Inland Revenue; In re Toshoku Finance plc: HL 20 Feb 2002
The court was asked as to the treatment of the assets of the company in case of a future insolvency. Held: Briggs J decided section 123(1)(e) required: ‘In my judgment, the effect of the alterations to the insolvency test made in 1985 and now found in section 123 of the 1986 Act was to replace … Continue reading In re Cheyne Finance Plc (No 2): ChD 17 Oct 2007