There is no power in the court to make any arrangement which will result in the preference of one set of creditors over others of the same class. Citations: Times 20-Nov-1997 Statutes: Insolvency Act 1986 183(1) Jurisdiction: England and Wales Cited by: Appeal from – In re Buckingham International Plc and In the Matter of … Continue reading In Re Buckingham International Plc: ChD 20 Nov 1997
Judges: Peter Smith J Citations: [2009] EWHC 1633 (Ch), [2010] 1 BCLC 673 Links: Bailii Statutes: Insolvency Act 1986 Jurisdiction: England and Wales Cited by: Appeal from – Brazzill and Others v Willoughby and Others CA 27-May-2010 The regulated bank Kaupthing Singer and Friedlander Ltd (KSF) was in financial difficulties. The Bank of England required … Continue reading Brazzill and Others v Willoughby and Others: ChD 10 Jul 2009
Judges: Arden LJ Citations: [2009] EWCA Civ 636 Links: Bailii Statutes: Insolvency Act 1986 Jurisdiction: England and Wales Citing: Appeal from – Golden Key Ltd (in receivership) ChD 4-Feb-2009 . . Cited by: Cited – Rainy Sky Sa and Others v Kookmin Bank SC 2-Nov-2011 Commercial Sense Used to Interpret Contract The Court was asked … Continue reading Golden Key Ltd (In receivership): CA 30 Jun 2009
A statutory demand was served against the guarantor of the lease after rent arrears arose. He applied for the demand to be set aside, and now appealed against its refusal. He said that the court would have set aside such a demand against the tenant, and should provide similar relief to a guarantor. Held: (Mummery … Continue reading Remblance v Octagon Assets Ltd: CA 17 Jun 2009
Request to strike out as an abuse of process an action under section 212. Citations: [2006] EWHC 2134 (Ch) Links: Bailii Statutes: Insolvency Act 1986 212 Jurisdiction: England and Wales Insolvency Updated: 28 July 2022; Ref: scu.263667
Judges: ICC Judge Barber Citations: [2021] EWHC 142 (Ch) Links: Bailii Statutes: Insolvency Act 1986 423 Jurisdiction: England and Wales Insolvency Updated: 28 July 2022; Ref: scu.657729
Patten J considered whether to grant consent to a monetary action against the company now in administration, and said: ‘it will be in exceptional cases that the Court gives a creditor whose claim is simply a monetary one, a right by the taking of proceedings to override and pre-empt that statutory machinery.’ Judges: Patten J … Continue reading AES Barry Ltd v Txu Europe Energy Trading: ChD 15 Jul 2004
The ordinary procedure of an insolvency involves two-stage, a statutory demand followed by a bankruptcy petition. The service of a ‘statutory demand’ in the prescribed form is simply one means of establishing ‘inability to pay’. The procedure is intended to be brief, and is aimed at establishing an inability to pay and no more. It … Continue reading Re a Debtor: ChD 1994
The parties, the bankrupt and her trustee, had engaged in a mediation which failed at first, but applicant said an agreement was concluded on the day following. The defendants denied this, and the court as asked to determine whether a settlement had occurred, and was now asked whether without prejudice communications made during the mediation … Continue reading Brown v Rice and Another: ChD 14 Mar 2007
The insolvency practitioner held many appointments. His partnership in a large firm of accountants ended suddenly. He did not have the resources to handle the cases, and nor could acceptable arrangements be made for him to have access to the related files within the firm. An application was made by another partner in the firm … Continue reading In Re Sutton (Removal of Liquidator): ChD 17 Oct 1997
Appeal against rejection of proof in insolvency proceedings for arrears of rent. Judges: Behrens J Citations: [2011] EWHC 1129 (Ch) Links: Bailii Statutes: Insolvency Act 1986 Jurisdiction: England and Wales Insolvency Updated: 25 July 2022; Ref: scu.434922
The deceased had given a guarantee of the tenant’s covenant given by his company under a lease. The court was asked whether the obligations under the guarantee survived his death after he company was wound up. Held: Chadwick LJ explained the Hindcastle case: ‘Lord Nicholls explained in Hindcastle v. Barbara Attenborough why the former practice … Continue reading Basch v Stekel and Another: CA 25 Jul 2000
Directors had been tried and convicted of offences which could have founded a s2 disqualification order. After they had been sentenced and left the dock, prosecuting counsel said to the judge: ‘Your Honour has made no reference to disqualification under the Act, so I take it your Honour makes no order?’ to which the judge … Continue reading Secretary of State v Nimley: ChD 5 Feb 2002
A creditor was bound by a voluntary arrangement if he knew of the meeting and was served properly. Citations: Times 25-Jul-1995 Statutes: Insolvency Act 1986 5(2)(b) Jurisdiction: England and Wales Insolvency Updated: 24 July 2022; Ref: scu.81642
Creditor not having had properly served on him a notice of the s257 meeting was not bound by an arrangement agreed at the meeting. Citations: Times 12-Nov-1993, Gazette 26-Jan-1994 Statutes: Insolvency Act 1986 257 260(2)(b) Jurisdiction: England and Wales Insolvency Updated: 24 July 2022; Ref: scu.81647
An interim s252 order was not sufficient to justify a stay of a peaceable forfeiture; such a proceeding was not ‘other proceedings’ within the Act. Citations: Gazette 13-Jul-1995 Statutes: Insolvency Act 1986 252(2)(b) Jurisdiction: England and Wales Insolvency Updated: 24 July 2022; Ref: scu.81673
A court cannot conditionally set aside a statutory demand served on debtor by a creditor. Citations: Times 03-May-1994 Statutes: Insolvency Act 1986 Jurisdiction: England and Wales Insolvency Updated: 24 July 2022; Ref: scu.81657
Where it was alleged that shares in a UK company had been sold at an undervalue, so as to allow a challenge in insolvency proceedings, the leave of the court was still required if the pleadings were to be served abroad. When the court considered such an application, it had to look not just at … Continue reading In Re Banco Nacional De Cuba: ChD 7 Jun 2001
Application by the Trustees of the bankruptcy estate of Mr Djurbery for a search and seizure order pursuant to s.365 of the Insolvency Act 1986 Judges: Insolvency and Companies Court Judge Jones Citations: [2022] EWHC 1534 (Ch) Links: Bailii Jurisdiction: England and Wales Insolvency Updated: 24 July 2022; Ref: scu.679125
The trustee in bankruptcy appealed against refusal of a declaration that a transfer of the bankrupt’s share in a house to his wife had been at an undervalue. Judges: Sales J Citations: [2011] EWHC 2047 (Ch), [2011] WTLR 1681, [2011] BPIR 1529 Links: Bailii Statutes: Insolvency Act 1986 339 Jurisdiction: England and Wales Insolvency Updated: … Continue reading Claridge, Re The Trustee In Bankruptcy of: ChD 29 Jul 2011
Outer House – Court of Session – Judges: Lord Hodge Citations: [2009] ScotCS CSOH – 50 Links: Bailii Statutes: Insolvency Act 1986 Citing: Cited – Equity and Law Life Assurance Society v Tritonia Ltd HL 1943 Viscount Simon LC said: ‘When an appeal is argued before the House of Lords, no one has any right … Continue reading HM Secretary of State for Business Enterprise and Regulatory Reform, Re Order To Wind Up UK Bankruptcy Ltd: SCS 31 Mar 2009
The court considered an application by the wife when, anticipating ancillary relief claims, the husband sought to have himself declared bankrupt, and she intervened to have the bankruptcy set aside. The husband now appealed. Held: Wilson LJ set out examples of the application to particular facts of the jurisdiction to reverse an error prior to … Continue reading Paulin v Paulin: CA 17 Mar 2009
EAT TRANSFER OF UNDERTAKINGS: Acquired rights directive TRANSFER OF UNDERTAKINGS: Varying terms of employment As a matter of construction of TUPE Reg 5(1), a contractual term entitling employees to pay ‘in accordance with collective agreements negotiated from time to time by [the NJC]’ is protected on a TUPE transfer to the private sector so as … Continue reading Alemo-Herron v Parkwood Leisure Ltd: EAT 12 Jan 2009
OR’s appeal from dismissal of order for income payments with an IPO. Judges: Warren J Citations: [2013] EWHC 4594 (Ch) Links: Bailii Statutes: Insolvency Act 1986 310 Jurisdiction: England and Wales Insolvency Updated: 23 July 2022; Ref: scu.522668
The court was asked to make a retrospective appointment of a company administrator. Held: Henderson J (in a reserved judgement) said that he shared Morgan J’s misgivings, but like him regarded the jurisdiction as a useful one and was prepared to follow the practice. Judges: Henderson J Citations: [2011] EWHC 1668 (Ch) Links: Bailii Statutes: … Continue reading In re Frontsouth (Witham) Ltd and Another: ChD 30 Jun 2011
Judges: Morgan J Citations: [2011] EWHC 1544 (Ch), [2011] ArbLR 34, [2011] BPIR 1524 Links: Bailii Statutes: Insolvency Act 1986 112 155 Jurisdiction: England and Wales Insolvency Updated: 22 July 2022; Ref: scu.441064
The court was asked whether the debts due to a former holder of a floating charge which, after the commencement of the liquidation of the company, releases its security, are ‘unsecured debts’ within section 176A. Judges: Roger Kaye QC J Citations: [2010] EWHC 2850 (Ch), [2011] BCC 93 Links: Bailii Statutes: Insolvency Act 1986 176A(2)(A) … Continue reading Kelly and Another v Inflexion Fund 2 Ltd and Another: ChD 11 Nov 2010
The claimant solicitors sought the winding up of its defendant company client for non-payment of fees including fees not yet delivered. The court refused to hold that the practices developed in relation to winding up should be imported into administration. The court considered what was meant by ‘creditor’. Warren J said: ‘a person is a … Continue reading Hammonds (A Firm) v Pro-Fit USA Ltd: ChD 17 Aug 2007
A block order had been made transferring the duties of an insolvency practitioner to another. In the case of an individual practitioner resigning, a creditor would have to be notified so as to be allowed to object. Here, the applicant sought a review of the transfer ordered by the court, having been notified after the … Continue reading Commissioners of Customs and Excise v Allen: ChD 6 Feb 2003
A landlord may exercise a right of peaceable re-entry without court action after his tenant company went into administration. It was not the enforcement of a security so as to be restricted by insolvency legislation. Citations: Times 04-May-1999, Gazette 26-May-1999 Statutes: Insolvency Act 1986 10(1) Jurisdiction: England and Wales Landlord and Tenant, Insolvency Updated: 19 … Continue reading In Re Lomax Leisure Ltd: ChD 4 May 1999
When considering whether to impose a disqualification order upon a company director, it was relevant to consider the unlawful and unauthorised use of the name of a liquidated company. The sections of the Insolvency Act which might be taken into account were not exhaustively listed. Citations: Times 02-Dec-1999, Gazette 08-Dec-1999 Statutes: Company Directors Disqualification Act … Continue reading In Re Migration Services International Ltd: ChD 2 Dec 1999
Application made pursuant to section 236 of the Insolvency Act 1986 by the Joint Liquidators of Comet Group Limited, (Comet), for information and documents which they contend they require to enable them to investigate and decide whether or not to pursue a claim in damages against the Respondents, Whirlpool (UK) Ltd, (Whirlpool UK), and Embraco … Continue reading Kahn and Others v Whirlpool (UK) Ltd and Another: ChD 27 Oct 2014
Company receivers in insolvency can include unregistered companies. Citations: Gazette 26-Aug-1992, [1993] 3 CL 247 Statutes: Insolvency Act 1986 29(2) Jurisdiction: England and Wales Cited by: Distinguished – In Re Devon and Somerset Farmers Ltd ChD 25-May-1993 An Industrial and Provident Societies Act society is unregistered and is therefore not a company for the purposes … Continue reading In Re International Bulk Commodities Ltd: ChD 26 Aug 1992
Saad Investments was a Cayman Islands company in liquidation. The liquidator brought an action here, but the defendant sought a stay saying that another forum was clearly more appropriate. Shares in Saudi banks were said to be held in trust for the company, but Saudi law would not recognise such trusts. The shares had been … Continue reading Akers and Others v Samba Financial Group: SC 1 Feb 2017
Sales LJ said: validation will ordinarily only be granted ‘if there is some special circumstance which shows that the disposition in question … has been … for the benefit of the general body of unsecured creditors’. Judges: Sir Terence Etherton Ch, Patten, Sales LJJ Citations: [2016] EWCA Civ 765 Links: Bailii Statutes: Insolvency Act 1986 … Continue reading Express Electrical Distributors Ltd v Beavis and Others: CA 19 Jul 2016
petition presented by the Secretary of State for Trade and Industry which seeks the winding up of Equity and Provident Ltd on grounds of public interest. Judges: Patten J Citations: [2002] EWHC 186 (Ch) Links: Bailii Statutes: Insolvency Act 1986 124A, Companies Act 1985 447 Jurisdiction: England and Wales Company Updated: 18 July 2022; Ref: … Continue reading In re Equity and Provident Ltd: ChD 19 Feb 2002
Collectors of share certificates are not members – have no right to share in compensation. Citations: Times 07-Jul-1993 Statutes: Insolvency Act 1986 112 Jurisdiction: England and Wales Insolvency Updated: 18 July 2022; Ref: scu.81728
The presumption of innocence does not protect a suspect by providing a right of silence in a complex fraud investigation. Citations: Times 10-Feb-1997 Statutes: Insolvency Act 1986 236 Jurisdiction: England and Wales Human Rights, Insolvency Updated: 18 July 2022; Ref: scu.81733
A creditor who had not been served with notice of the creditors’ meeting may still validly vote at it. Citations: Times 27-Feb-1997 Statutes: Insolvency Act 1986 257 Jurisdiction: England and Wales Insolvency Updated: 18 July 2022; Ref: scu.81842
Receivers had adopted employees’ contracts by continuing employment after 14 days despite their overt denial. Citations: Independent 13-Sep-1994, Times 11-Aug-1994 Statutes: Insolvency Act 1986 44 Jurisdiction: England and Wales Employment, Insolvency Updated: 18 July 2022; Ref: scu.81885
Administrators took on new employees during the period of administration, but when it came to an end, they were unable to pay the PAYE and NIC for the employees. Held: The statute gave special priority to debts incurred under new contracts. The liability for PAYE fell under that category, and so did liability for NIC, … Continue reading In Re FJL Realisations Ltd: ChD 2 Mar 2000
The liquidator of a company in a creditors voluntary liquidation, and which had been importing cigarettes received a proof of debt from a company in Zimbabwe. The liquidator suspected that the proof relied upon a false declaration in denying that true country of origin of the cigarettes to avoid import duty, and sought an order … Continue reading In Re Bellmex International Ltd: ChD 23 Mar 2000
The bank had received and paid substantial sums from the company before the petition for insolvency had been presented, and had discharged the director’s charge on his house. The liquidator sought restitution under the Act. The bank replied that it had acted already in such a way as to put its own position at risk, … Continue reading Rose v AIB Group (UK) plc and Another: ChD 9 Jun 2003
The Court was asked whether the liability of a debtor for future payments under an income payments order (IPO) made in the debtor’s bankruptcy ranks as a provable debt in a later bankruptcy of the same debtor. The answer is provided by section 335 of the Insolvency Act 1986 (the Act) if the later bankruptcy … Continue reading Azuonye v Kent: CA 19 Jul 2019
This appeal raises questions of both contractual interpretation and the duties owed by administrators at common law and under paragraph 74 of Schedule B1 to the Insolvency Act 1986 Judges: Sir Geoffrey Vos, Chancellor of the High Court Citations: [2019] EWCA Civ 1290 Links: Bailii Jurisdiction: England and Wales Insolvency Updated: 17 July 2022; Ref: … Continue reading Fraser Turner Ltd v Pricewaterhousecoopers Llp and Others: CA 19 Jul 2019
Judges: Sir Edward Evans-Lombe Citations: [2009] EWHC 1118 (Ch), [2011] 2 BCLC 788 Links: Bailii Statutes: Insolvency Act 1986 124A Jurisdiction: England and Wales Company Updated: 17 July 2022; Ref: scu.346321
The Court of Appeal had allowed an appeal from the judge who had directed that the transcripts of examinations of a director of an insolvent company under section 236 on the Director of the Serious Fraud Office undertaking that the transcripts would not be used save in the circumstances specified in section 2(8) of the … Continue reading Re Arrows Ltd No 4: HL 1995
The provisions of the two Acts are intended to be part of the same statutory scheme and are to be read in combination. Judges: Vinelott J Citations: [1992] Ch 457 Statutes:
Appeal from setting aside of statutory demands. Citations: [2019] EWHC 1581 (Ch) Links: Bailii Statutes: Insolvency Act 1986 268 Jurisdiction: England and Wales Insolvency Updated: 15 July 2022; Ref: scu.639293
Application by Mr Bagnall for permission to apply for an order quashing on public law grounds a decision by the Secretary of State notified to Mr Bagnall on the 1st October 1999 to exercise the power conferred by Section 296 of the Insolvency Act 1986 to appoint Mrs Jackson as his trustee in bankruptcy. Judges: … Continue reading The Queen and Secretary of State for Trade and Industry ex parte Kenneth Reginald Bagnall QC: Admn 22 Feb 2000
The registrar had decided that the debtor’s centre of main interests was situated in Switzerland. Held: Article 3 of Regulation (EC) 1346/2000 did not displace the bankruptcy jurisdiction which (as the registrar found) the High Court would otherwise have under section 265 of the Insolvency Act 1986. Judges: Judge Howarth Citations: [2002] EWHC 2898 (Ch) … Continue reading Skjevesland v Geveran Trading Company Limited: ChD 2002
On the divorce, the husband was ordered to transfer his share in the house to the wife. On his bankruptcy shortly after, the order was confirmed. After the wife sold the property at a profit, the trustee in bankruptcy applied to set the transfer aside as a transaction at an undervalue. Held: The starting point … Continue reading Haines v Hill and Another: CA 5 Dec 2007
Judges: His Honour Judge Halliwell Citations: [2019] EWHC 1722 (Ch) Links: Bailii Statutes: Insolvency Act 1986 234(2) Jurisdiction: England and Wales Insolvency Updated: 12 July 2022; Ref: scu.639301
The defendant, an undischarged bankrupt, appealed an order made for his committal to prison after failing to co-operate with his trustee. Held: The discharge of the bankruptcy had been extended already because of the defendant’s failure to co-operate. The defendant had not been given notice of the application for his committal. Section 364 was not … Continue reading Hickling v Baker: CA 4 Apr 2007
The offence of trading under a company name after a similar named company had folded is absolute; no need to show intent to deceive. Citations: Gazette 16-Jul-1997 Statutes: Insolvency Act 1986 216 Jurisdiction: England and Wales Company Updated: 10 July 2022; Ref: scu.86406
Practice and Procedure – Stay – Paragraph 43(6) Schedule B1 Insolvency Act 1986 The Claimant had commenced Employment Tribunal (‘ET’) proceedings against eight Respondents. Subsequently, the first two Respondents (one of which had been the Claimant’s employer) went into administration and a stay was imposed on the proceedings under paragraph 43(6) Schedule B1 Insolvency Act … Continue reading Ince Gordon Dadds Llp and Others v J Tunstall and Others: EAT 19 Jun 2019
Judges: Tucke, Carnwath, Neuberger LJJ Citations: [2006] EWCA Civ 1720, [2007] Bus LR 589 Links: Bailii Statutes: Insolvency Act 1986 Jurisdiction: England and Wales Citing: Cited – In re Clark (a bankrupt); ex parte the Trustee v Texaco Ltd ChD 1975 Walton J restated the rule in In re James: ‘the rule provides that where … Continue reading Getliffe and Another, Re Lune Metal Products Ltd: CA 14 Dec 2006
The claimants, the former administrators of Sunnyside Holiday Park Ltd sought an order that the unpaid balance of their remuneration and expenses is by para 99(3) of Sch B1 Insolvency Act 1986 charged on and payable out of a sum of pounds 62,646.06 said to be payable by the first defendant (‘the Bank’) to the … Continue reading Walker and Another v National Westminster Bank Plc and Another: ChD 25 Feb 2016
the court considered whether liabilities for damages for wrongful dismissal of football players were debts provable in insolvency. Held: When an administrator of a company adopted contracts of employment and the company later was found liable to pay damages for their wrongful dismisal, the damages payable did not have priority in the liquidation. Judges: Pumfrey … Continue reading In re the Leeds United Association Football Club: ChD 25 Jul 2007
The claimant alleged that the defendants had funded the purchase of various properties by secret and unlawful commissions taken by them whilst in power in Pakistan. They sought to recover the proceeds. They now sought permission to serve proceedings on the defendant companies abroad, outside a Lugano Convention country. Held: The claim should proced. ‘There … Continue reading Islamic Republic of Pakistan v Zardari and others: ComC 6 Oct 2006
Judges: Thomas Ivory QC Citations: [2006] EWHC 2126 (Ch) Links: Bailii Statutes: Insolvency Act 1986 212 Insolvency Updated: 07 July 2022; Ref: scu.244499
Citations: [2006] EWHC 1804 (Ch) Links: Bailii Statutes: Company Directors Disqualification Act 1986 8 Jurisdiction: England and Wales Company, Insolvency Updated: 07 July 2022; Ref: scu.243298
The insurance company was to be wound up. It operated internationally but was registered in Australia. The Australian liquidator now sought an order for the transfer of assets held here to Australia. Held: It was inevitable that cross border insolvency arrangements would cause difficulty, and particularly so for insurance companies. Such a transfer would prejudice … Continue reading McGrath and Honey v McMahon and Others, Re HIH Casualty and General Insurance Ltd and others: CA 9 Jun 2006
Judges: The Honourable Mr Justice David Richards Citations: [2006] 3 All ER 755, [2006] 1 WLR 1792, [2006] EWHC 842 (Ch) Links: Bailii Statutes: Insolvency Act 1986 Jurisdiction: England and Wales Citing: See Also – T and N Limited, Associated Companies of T and N Ltd (In Administration) v Royal and Sun Alliance Plc, and … Continue reading In the Matter of T and N Limited and others: ChD 12 Apr 2006
Companies Court application under s. 130(2) of the Insolvency Act 1986 for permission to commence proceedings against the respondent, which is a limited liability partnership in liquidation. The application is in effect to join the respondent to proceedings which have already been commenced in the Commercial Court. Judges: Proudman J Citations: [2009] EWHC 1901 (Ch) … Continue reading Bourne and 101 Othes v The Charit-Email Technology Partnership Llp: ChD 23 Jul 2009
The bankrupt had been entitled to a valuable vehicle registration mark ‘AMR 1T’. He sold it to a creditor, the claimant to clear that debt. The trustee now said that the purported assignment was ineffective. Held: ‘VRMs are assigned to vehicles, not to registered owners or other individuals. The Secretary of State has power to … Continue reading Goel v Pick: ChD 12 Apr 2006
Citations: [2005] EWHC 2743 (Ch) Links: Bailii Statutes: Insolvency Act 1986 212 Jurisdiction: England and Wales Insolvency Updated: 05 July 2022; Ref: scu.239287
The claimant had received an overpayment of benefits (Job seeker’s allowance), but then was made bankrupt. He now said that this was a debt in the bankruptcy. Held: It was not. At the date of the bankruptcy order, the possible reclaim was not yet a contingent debt, and he remained liable. There was no contingent … Continue reading Steele, Regina (on the Application of) v Birmingham City Council and The Secretary of State for Work and Pensions: CA 16 Dec 2005
Judges: Rix, Maurice Kay LJJ, Sir Martin Nourse Citations: [2006] EWCA Civ 203, [2007] Bus LR 813 Links: Bailii Statutes: The Insolvency Act 1986 Jurisdiction: England and Wales Cited by: Cited – In re Nortel Companies and Others SC 24-Jul-2013 The court was asked as to the interrelationship of the statutory schemes relating to the … Continue reading Exeter City Council v Bairstow and others; Re Trident Fashions plc: CA 10 Mar 2006
The appellant had lived with the bankrupt for several years, and sought an order delayng sale of the house they had lived in until their children had grown up. She said the circumstances were exceptional. Held: The fact that the delay might put at risk the payment of the creditors in full and with interest … Continue reading Donohoe v Ingram: ChD 20 Jan 2006
The company challenged the appointment of administrative receivers, saying there had been no insolvency. Held: No question arises of a derivative action arose here. The claimant had standing to apply for declaratory relief since they were directly affected by the appointment. As to the appointment itself ‘it is inconceivable that in enacting the relevant provisions … Continue reading Cabvision Ltd v Feetum and others: CA 20 Dec 2005
The claimant company had failed in its action. The court was asked to make a costs order personally against the principal director of the claimant who had controlled the litigation and funded it. He responded that no impropriety had been shown on his part to allow such an order. Held: ‘It is not a requirement … Continue reading BE Studios Ltd v Smith and Williamson Ltd: ChD 2 Dec 2005
The administrators having made a distribution, concluded that no further assets would be recovered and sought directions from the court to allow them to withdraw and close the administration. Held: The court had power to make the order requested which would lead to the dissolution of the company. The test was expressed in the present … Continue reading In re GHE Realisations Ltd (In Administration): ChD 4 Nov 2005
The administrators had adopted the contracts of certain employees, who now claimed that the protective awards should have priority to the expenses of the administration. Held: The payments did fall within paragraph 99(5) and do not have super-priority.Responsibility for protective awards on insolvency. Judges: Lord Justice Clarke Lord Justice Jacob Lord Justice Neuberger Citations: [2005] … Continue reading Krasner v McMath; in Re Huddersfield Fine Worsteds Limited: CA 12 Aug 2005
Creditors in a liquidation have only a right to have the assets administered by the liquidator in accordance with the provisions of the Insolvency Act 1986. The trust applies only to the company’s property. It does not affect the proprietary interests of others. Citations: [1975] 1 WLR 355 Jurisdiction: England and Wales Cited by: Cited … Continue reading In re Calgary and Edmonton Land Co Ltd (In liquidation): 1975
The court was asked whether the process of distraint against goods for unpaid tax under section 61 of the 1970 Act is an ‘execution’ within section 183 of the 1986 Act which applies where a creditor has issued, but not completed, execution against the goods or land of a company which is subsequently wound up. … Continue reading Brenner v Revenue and Customs; In re Modern Jet Support Centre Ltd: ChD 21 Jul 2005
The defendants had obtained world-wide Mareva injunctions in support of substantive proceedings by way of their counterclaim to enforce an arbitration award against the plaintiffs under section 26 against two companies, Aiglon Limited and L’Aiglon SA (a Swiss company). Held: There was no basis under section 26 for enforcement of the arbitration award against SA, … Continue reading Aiglon Limited and another v Gau Shan Co Limited: ChD 1993
A third party agreed to pay the bankrupt’s debts. He applied for the bankruptcy to be annulled, and for the trustee’s costs to be assessed and fixed at a reasonable level under section 303. The trustee appealed the costs order saying that the bankrupt had not been prejudiced by his actions. Held: The appeal was … Continue reading Peri v Engel: ChD 29 Apr 2002
Judges: Hart J Citations: [2004] EWHC 1287 (Ch) Links: Bailii Statutes: Insolvency Act 1986 423 Jurisdiction: England and Wales Citing: Cited – Halsall v Brizell ChD 1957 Land in Liverpool was sold in building plots. The vendors retained the roads and sewers and a promenade and sea wall. A separate deed of covenant of 1851 … Continue reading Beckenham Mc Ltd v Centralex Ltd and others: ChD 10 Jun 2004
The appellant had been convicted of an offence under the section in that as a bankrupt, he ‘in the two years before the petition, materially contributed to, or increased the extent of, his insolvency by gambling or by rash and hazardous speculations’. The actus reus – the bankruptcy petition and the bankruptcy to which it … Continue reading Regina v Muhamad: CACD 19 Jul 2002
Citations: [2001] EWCA Civ 509 Links: Bailii Statutes: Insolvency Act 1986 Jurisdiction: England and Wales Citing: See Also – Multicultural Media Centre for the Millennium Ltd v Millennium Commission CA 19-Oct-2001 Where a court was faced with a situation where both parties wished to proceed, but one wanted to put in an affidavit which the … Continue reading Re Multicultural Media Centre for the Millenium Ltd: CA 22 Mar 2001
Judges: Mr Justice Collins Citations: [2004] EWHC 1765 (Ch) Statutes: Insolvency Act 1986 Jurisdiction: England and Wales Insolvency Updated: 29 June 2022; Ref: scu.199577
The council appealed a decision that the administrative receivers of a company were not liable personally for the non-domestic rates otherwise incurred by a company during the receivership. Held: The activities of the receiver or manager were not activities creating a ratable occupation. The original business owner remained in occupation for this purpose. Judges: Lord … Continue reading In re Beck Foods Ltd: Boston Borough Council v Rees and Bennett: CA 20 Dec 2001
The liquidator sought to commence an action for fraudulent trading against a former director, who responded that the claim was time barred. Held: The claim arose when the winding-up order was made and not on any of the earlier dates suggested by the second respondent. Judges: Sir Andrew Morritt Links: Times Statutes: Insolvency Act 1986 … Continue reading In re Overnight Limited; Goldfarb v Higgins and Another: ChD 11 Feb 2009
Appeal against strike out of application to have set aside deeds of assignment. Judges: Brooke VP, Arden LJJ Citations: [2005] EWCA Civ 276 Links: Bailii Statutes: Insolvency Act 1986 167(3) 168(5) Jurisdiction: England and Wales Citing: Cited – In Re Edennote Ltd; Tottenham Hotspur plc v Ryman CA 21-May-1996 The company was in liquidation. Terence … Continue reading Ultraframe (UK) Ltd v Rigby and others: CA 19 Jan 2005
The defendant’s company in South Africa had become insolvent and the claimant had recovered judgment for arrears of rent. They obtained a freezing order against the defendant. The defendant appealed saying the court did not have jurisdiction, and should have taken account of cross claims. The defendant argued that the order was sought on a … Continue reading John Louis Carter Fourie v Allan Le Roux and others: CA 7 Mar 2005
Separate applications were made by liquidators of companies in variously voluntary or compulsory liquidation and otherwise. Judges: Chadwick J Citations: [1995] 2 BCLC 594 Statutes: Insolvency Rules 4.108 6.126 Jurisdiction: England and Wales Citing: Followed – Re Bridgend Goldsmiths Limited and Others ChD 1995 The High court may not exercise its jurisdiction under section 263 … Continue reading In re Sankey Furniture Ltd, ex parte Harding; Re Calorifique Limited, ex parte Betts: ChD 1995
Citations: [2002] EWCA Civ 1518 Links: Bailii Statutes: Insolvency Act 1986 423 Jurisdiction: England and Wales Insolvency Updated: 28 June 2022; Ref: scu.217723
In 1989, the taxpayer transferred property by means of a trust deed in favour of his son in consideration of his ‘natural love and affection’ for him. Four years later the commissioners investigated his tax affairs, and concluded that there were substantial undisclosed business profits. He died in 1997 owing substantial sums, and the commissioners … Continue reading Inland Revenue Commissioners v Hashmi and Another: ChD 4 Oct 2001
The applicants were in turn the recipient of a Social Fund loan and a claimant who had been overpaid benefit. Both were later declared bankrupt. The Secretary of State then began to recover the loan and overpayment by deduction from their current benefits. They argued that he was unable to do so because of section … Continue reading Regina v Secretary of State for Social Security, Ex parte Taylor and Chapman: ChD 5 Feb 1996
Challenges associated with rejection of proof of debt. Judges: Hollander QC HHJ Citations: [2009] EWHC 157 (Ch), [2010] Bus LR 599, [2009] 1 BCLC 689, [2009] BPIR 306 Links: Bailii Statutes: Insolvency Act 1986 172(3) Jurisdiction: England and Wales Insolvency Updated: 28 June 2022; Ref: scu.304539
Citations: [2005] BPIR 842 Statutes: Insolvency Act 1986 423 Jurisdiction: England and Wales Cited by: Appeal from – Hill (As Trustee In Bankruptcy of Nurkowski) v Spread Trustee Company Ltd and Another CA 12-May-2006 The defendants sought relief for transactions entered into at an undervalue. The bankrupt had entered into charges and an assignment of … Continue reading Hill (As Trustee In Bankruptcy of Nurkowski) v Spread Trustee Company Ltd and Another: ChD 2005
Citations: [2005] EWCA Civ 1291 Links: Bailii Statutes: Insolvency Act 1986 216 Jurisdiction: England and Wales Insolvency, Company Updated: 28 June 2022; Ref: scu.234555
Judges: The Hon Mr Justice Richards Citations: [2004] EWHC 2740 (Ch) Links: Bailii Jurisdiction: England and Wales Citing: See Also – 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 T and N had exposure to asbestosis claims; these claims were … Continue reading Freakley, Gleave, Squires, T&N Limited v Centre Reinsurance International Company, Muenchener Rueckversicherungs-Gesellschaft, European International Reinsurance Company Limited, Curzon Insurance Limited: ChD 26 Nov 2004
Mrs D had gone into business with the respondents to operate a residential care home. It was to be run from premises owned by the respondents. The respondents inter alia had failed to disclose previous convictions, the registration was cancelled, and the company was insolvent. Heads of agreement with an attached draft lease had been … Continue reading Dyment v Boyden and others: CA 26 Nov 2004
Citations: [2001] EWCA Civ 387, [2001] BPIR 612, [2001] Fam Law 879 Links: Bailii Statutes: Insolvency Act 1986 335A Jurisdiction: England and Wales Insolvency Updated: 27 June 2022; Ref: scu.218057
Second application for permission to appeal. Citations: [2002] EWCA Civ 969 Links: Bailii Statutes: Insolvency Act 1986 335A Jurisdiction: England and Wales Land, Insolvency Updated: 27 June 2022; Ref: scu.217326
Citations: [2001] EWCA Civ 1316 Links: Bailii Statutes: Insolvency Act 1986 375(1) Jurisdiction: England and Wales Insolvency Updated: 27 June 2022; Ref: scu.201321
The Secretary of state sought the winding up of the companies saying it was expedient in the public interest to do so. A shareholder opposed this saying that the companies were solvent. Held: The shareholder had, in the absence of any position taken by the company, the standing to make the application, which was granted … Continue reading Rodencroft Limited, W. G. Birch Developments Limited, H-M Birch Limited; Simon Allso v The Secretary for State for Trade and Industry: ChD 23 Apr 2004
The Secretary of State sought the winding up of a company. The court considered the discretion to accept undertakings as to the company’s future conduct: ‘Quite clearly the Company has been engaged in a disreputable system of trading. The Company has offered a series of undertakings which are designed to secure that its future trading … Continue reading Re Bamford Publishers Ltd: ChD 2 Jun 1977