The liquidator sought to revoke or suspend the voluntary arrangement on the grounds of a material irregularity, but the application was lodged well outside the statutory 28 day limit, and he first sought leave to apply out of time. Held: The court had a discretion to extend the limit, and could take into account a … Continue reading Warley Continental Services Ltd (in liquidation) v Johal: ChD 7 Oct 2002
The company Edennote had been wound up on insolvency. It had a possible claim for fees against Tottenham, owned by Mr Sugare. The shareholder, Terry Venables, took an assignment of that action. An application was made to set aside the assignment and to remove the liquidator. Held: The application succeeded. The assignment of the action … Continue reading In Re Edennote Ltd; Tottenham Hotspur plc v Ryman: ChD 1 Nov 1994
Registrar Simmonds considered that: ‘in order to convert what is clearly an unliquidated sum to a liquidated sum there must be . . clear and unequivocal conduct or agreement on the part of the debtor to demonstrate acceptance of those bills of costs such as to forego the right of assessment and to convert them … Continue reading Re Le Winton: ChD 31 Jul 2007
The claimant company sought leave whilst in administration to bring arbitration proceedings against the defendant insurers. Held: In exercising the discretion given by the section, the court had only to decide whether the claim was so bad that it would be a waste of resources to allow it to proceed to arbitration. It was the … Continue reading Enron Metals and Commodity Ltd (in Administration) v HIH Casualty and General Insurance Limited: ChD 10 Mar 2005
Section 130(2) of the 1986 Act gives the court the freedom to do what is right and fair in all the circumstances. Citations: [2002] 2 BCLC 228, [2002] EWCA Civ 300 Links: Bailii Statutes: Insolvency Act 1986 130(2) Jurisdiction: England and Wales Insolvency, Insurance Updated: 23 June 2022; Ref: scu.216828
The bankrupt had been discharged from his bankruptcy, but his share in the family home remained vested in the trustee who applied for the sale of the home. His wife applied to set aside an order for sale on the basis that it interfered with her right to family life. Held: Previous decisions had not … Continue reading Nicholls v Lan and Another: ChD 26 May 2006
The applicants sought a declaration that the appointment of the defendants as administrative receivers of the company, a limited liability company, was precluded by the 1986 Act. Held: The administrator had been appointed under a debenture, but the section precluded such appointments by proprietors of a floating charge unless one of the exceptions specified arose, … Continue reading Feetum and Other v Levy and Others: ChD 5 Jan 2005
The principle to the effect that the court should exercise its discretion to restrain a distress levied by a landlord before the commencement of a winding-up only where there were special circumstances rendering it inequitable that he should be permitted to do so, applies also to a distress levied by the Crown under a statutory … Continue reading Herbert Berry Associates Ltd v Inland Revenue Commissioners; re Herbert BerrySP, Regina (on The Application of) v The Lord Chancellor: HL 1977
The court heard a contributors’ petition. The directors were in deadlock with equal shareholdings. The petition was not making good progress, and a creditor’s petition was then issued. The shareholder sought a stay. Held: There was a sufficient allegation of insolvency in the petition, and it was right that the petition should be allowed to … Continue reading Re Camburn Petroleum Products Ltd: ChD 1979
Judges: Her Honour Judge Frances Kirkham Citations: [2003] EWHC 957 (Ch) Statutes: Insolvency Act 1986 216(3) Jurisdiction: England and Wales Insolvency Updated: 21 June 2022; Ref: scu.181636
The defendant sought a stay of a warrant for possession. It had submitted to an order for possession by consent in return for a promise of alternative accomodation. They sought a stay under section 89, saying that the claimant had not complied with its own obligations. Held: The general words of section 89 do not … Continue reading Hackney v Side By Side (Kids) Ltd: QBD 14 Jul 2003
Citations: [2012] EWCA Civ 1443 Links: Bailii Statutes: Insolvency Act 1986 423 Jurisdiction: England and Wales Insolvency Updated: 18 June 2022; Ref: scu.465794
Company disqualification proceedings may conclude in the county court after a winding up of the company in that court. The power to disqualify directors survives the finishing of the winding up of the company, even though the Official Receiver had had no right to commence the proceedings and the County Court had had no jurisdiction … Continue reading In Re the Working Project Ltd; In Re Fosterdown Ltd and Others: ChD 27 Oct 1994
The husband and wife had separated and divorced. In ancillary proceedings, the family home had been transferred to the wife under a court order. The judge had noted that the husband was hopelessly insolvent, and he was made bankrupt some time later on his own petition. The trustees appealed refusal of the court to set … Continue reading Hill and Another v Haines: ChD 3 May 2007
Where a company had gone into administration, it was not correct for a criminal prosecution under the Act to proceed without first getting the consent of the court or of the company’s administrator. Such proceedings constituted ‘other proceedings’ under the Insolvency Act. The divisional court was not bound by decisions of the Court of Session … Continue reading In Re Rhondda Waste Disposal Company Ltd (In Administration): ChD 13 Aug 1999
Where a liquidator sought disclosure of documents prepared under statute by advisers for company, it was a matter for judge as to the extent of any redaction required. Citations: Gazette 03-Dec-1997, Times 10-Dec-1997 Statutes: Insolvency Act 1986 236 Jurisdiction: England and Wales Insolvency Updated: 17 June 2022; Ref: scu.82245
Since company director disqualification proceedings were not criminal proceedings, even though they involved the imposition of a penalty, they remained civil proceedings in nature. The European Convention on Human Rights did not apply to protect a director against having material, disclosed by him under compulsion in the course of an insolvency, being used against him … Continue reading In Re Westminster Property Management Ltd: ChD 19 Jan 2000
The High Court may always choose to appoint a new supervisor of a voluntary arrangement. Citations: Times 03-Mar-1997 Statutes: Insolvency Act 1986 108(1) Jurisdiction: England and Wales Insolvency Updated: 17 June 2022; Ref: scu.82310
The administrators held cash. They proposed a distribution giving creditors who would on a winding up be preferential, full preference. They appealed refusal by the court to sanction the proposal. Held: The court had no power to make such an order. From the cases there were three sources for the court’s power to sanction, or … Continue reading In re Luna Metal Products Ltd (in Administration): CA 14 Dec 2006
Judges: Rimer J Citations: [2007] EWHC 1585 (Ch) Links: Bailii Statutes: Insolvency Act 1986 266(3) Jurisdiction: England and Wales Insolvency Updated: 13 June 2022; Ref: scu.254490
Judges: ICC Judge Mullen Citations: [2022] EWHC 1349 (Ch) Links: Bailii Statutes: Insolvency Act 1986 212 Jurisdiction: England and Wales Insolvency Updated: 13 June 2022; Ref: scu.678299
The directors of the company had organised a scheme for imports from China which was thought to be an unlawful abuse of the import licensing scheme. When presneted with an application by the Secretary of State for the winding up of the company, the company gave undertakings as to their future conduct. They then sought … Continue reading Bell Davies Trading Ltd and Another v Secretary of State for Trade and Industry: CA 30 Jul 2004
The company went into insolvent liquidation. The secretary of state was to make payments to employees and there were other state preferential creditors. At the same time a refund of VAT was due from the Commissioners of customs and Excise. Held: The sums paid out and preferential debts could be set off against the VAT … Continue reading Secretary of State for Trade and Industry v Frid: HL 13 May 2004
The expression ‘cross-demand’ in rule 6.5(4)(a) did not imply any kind of procedural or juridical relationship to the debt subject to the statutory demand. All it meant was that the demand was one that went the other way, i.e. was a demand by the debtor on the creditor. The cross-claim must still be one which … Continue reading Popely v Popely: CA 30 Apr 2004
Early repayment of loan to company directors before insolvency was void. Citations: Gazette 19-Feb-1997 Statutes: Insolvency Act 1986 239(6) Jurisdiction: England and Wales Company Updated: 10 June 2022; Ref: scu.85745
Sir Andrew Morritt V-C said that in the context of winding up proceedings the test for whether there is a genuine triable issue in a disputed claim, is whether the debt is bona fide disputed on substantial grounds, which, for practical purposes, is synonymous with ‘real as opposed to frivolous.’ Judges: Lord Justice Mance Vice-Chancellor, … Continue reading In re The Arena Corporation Limited; Commissioners for Customs and Excise v The Arena Corporation Limited; the Arena Corporation Limited v Schroeder: CA 25 Mar 2004
Insolvent trading Citations: [2004] EWHC 316 (Ch) Links: Bailii Statutes: Insolvency Act 1986 214 Jurisdiction: England and Wales Insolvency, Company Updated: 10 June 2022; Ref: scu.194153
The liquidator sought to recover his expenses from assets charged under a floating charge in priority to the chargee. Held: Barleycorn was decided in error. The liquidators costs incurred in an insolvent winding up were not to be charged against the assets subject to the floating charge: ‘The winding up of a company is a … Continue reading Buchler and another (as joint liquidators of Leyland DAF Limited) v Talbot and another (as joint administrative receivers of Leyland DAF Limited) and Stichting Ofasec and others: HL 4 Mar 2004
Where a bankrupt wished to pursue an action held for him personally rather than his creditors. Held: The trustee in bankruptcy held the right of action in trust for the bankrupt, but declined to sue. The bankrupt had the right to join the trustee as a co-defendant and to commence the action under his own … Continue reading Mulkerrins v Pricewaterhousecoopers (A Firm): ChD 29 Mar 2000
Action for order removing liquidators Judges: Purle QC J Citations: [2010] EWHC 3676 (Ch) Links: Bailii Statutes: Insolvency Act 1986 108 Jurisdiction: England and Wales Insolvency Updated: 10 June 2022; Ref: scu.430493
The liquidators had lost their legal action, and had been ordered to pay the present claimants their costs. They sought payment out of an insolvency services account in competition with the solicitors for the liquidators. Held: An award of costs was not a payment of ‘expenses incurred in the winding up’ and therefore the court … Continue reading Digital Equipment Co Ltd and Others v Bower and Others: ChD 4 Dec 2003
The applicant company obtained an injunction against another company. That freezing injunction was discharged upon the payment of a sum into the names of the respective parties’ solicitors. The company went into liquidation, and the claimant disputed ownership of the sum with the provisional liquidators. Held: The deposit of the sum was insufficient to create … Continue reading Edwards, Drummond Smith v Flightline Limited: CA 5 Feb 2003
Company directors in an insolvent liquidation faced proceedings by the liquidators. They resisted providing additional evidence under examination by the liquidators. Held: The sections under the 1986 Act should be read together. Where a director faced serious charges, requiring him to provide evidence against himself would be oppressive. The existence of such proceedings must be … Continue reading Shierson and Another v Rastogi and Another: CA 9 Nov 2002
Shareholders with over 90% of the issued shares sought to acquire the remaining shares, and create another company to do so. That company offered to purchase the shares at a valuation. The majority shareholders accepted but the minority shareholder refused. The new company gave notice to exercise the statutory power of compulsory acquisition under the … Continue reading Re Bugle Press Ltd: CA 2 Jan 1961
The company’s assets were subject to a floating charge. That had crystallised. The liquidators, after a voluntary winding up, sought to make the assets remaining after repayment of the sums secured, available to pay the costs of the winding up. The trustees of the debenture sought to appeal a finding that the assets were so … Continue reading Buchler and Another v Talbot and others: CA 22 Feb 2002
When a defendant was accused of an offence under the section, and wished to raise a defence under sub-section 4, the duty of proof placed on him by the sub-section amounted to a duty to bring sufficient evidence to raise the defence, and the section did not transfer the burden from the prosecution. Held: To … Continue reading Regina v Clive Louden Carass: CACD 19 Dec 2001
The defendant had been convicted of using words or behaviour likely to cause harassment alarm or distress, when she defaced the US flag, and stood on it before a US military officer. She said that the defacing of flags was a common form of protest, that she had no intention to cause alarm or distress, … Continue reading Percy v Director of Public Prosecutions: Admn 21 Dec 2001
For an order to be made under the section, and a contribution to the shortfall on insolvency made, it was necessary to show that the person against whom the order was sought had in some way participated in the fraudulent activity. It was not necessary to show that there had been any direct involvement in … Continue reading Morris v Banque Arab et Internationale D’Investissment SA (No 2): ChD 26 Oct 2000
Powers to deal with receivers remuneration are to be read as a whole and widely. Citations: Times 29-Mar-1996 Statutes: Insolvency Act 1986 35 Jurisdiction: England and Wales Insolvency Updated: 05 June 2022; Ref: scu.83847
The Court reminded insolvency practitioners of fiduciary duties to creditors when refusing application for further payment on account of costs. Ferris J considered the principles applicable to fixing the remuneration of receivers of the estate of Robert Maxwell appointed by the court under section 37 of the 1981 Act. Their total recoveries before their remuneration … Continue reading Mirror Group Newspapers Plc v Maxwell and Others (No 2): ChD 15 Jul 1997
The respondent farmers charged the farm by way of an agricultural floating charge to the claimants. On coming into difficulties, they set up a limited company and granted a tenancy in its favour and transferred assets to it. The bank obtained declarations that the charges remained valid and that the new tenancies and assignments should … Continue reading National Westminster Bank plc v Jones and Others: CA 24 Oct 2001
A director was prosecuted for the criminal offence of fraudulent trading, and in light of that the Disqualification Unit at the Insolvency Service decided not to pursue its own disqualification application under s6 but to ask the prosecution to seek an order under s2 if a conviction was obtained. That request was made to the … Continue reading Re Denis Hilton Ltd: ChD 2002
A transaction could be deemed to be at an undervalue and caught by the section even though it made no difference to the overall assets and even though only one rather than the generality of creditors was prejudiced by the transaction. Here, by creating a tenancy in favour of a limited company whose shares they … Continue reading National Westminster Bank Plc v Jones and Others: ChD 7 Jul 2000
The accused had been convicted. After exercising his right to silence, there were read to the court accounts of statements made by co-accused but without an opportunity for him to cross examine the witnesses. Held: Saunders had established the integral part of a fair trial played by the right of silence. The inability to cross … Continue reading Luca v Italy: ECHR 27 Feb 2001
Judges: Simon Barker QC Citations: [2014] EWHC 2753 (Ch), [2015] 2 All ER 581 Links: Bailii Statutes: Insolvency Act 1986 212 Jurisdiction: England and Wales Insolvency Updated: 04 June 2022; Ref: scu.535636
Judges: Hart J Citations: [2001] EWHC Ch 451 Links: Bailii Statutes: Company Directors Disqualification Act 1986 6 Jurisdiction: England and Wales Insolvency, Company Updated: 04 June 2022; Ref: scu.163008
The claimants appealed from a refusal to annul their bankruptcies, saying that they should not ever have been made, because the petition debt was not a liquidated debt. The claimants said that the debt had been repudiated. Held: The appeal failed. A present right to future payment was not transformed into a claim for damages … Continue reading Webster and Another v Mackay: ChD 19 Jul 2013
The company sought to have struck out as an abuse an application to have it would up on the just and equitable ground. The status of the authority as creditor was disputed. Held: A petition was properly presented only if the petioner bona fide pursued some interest arising from the issue which gave him standing … Continue reading In re Millenium Advanced Technology Ltd: ChD 2 Apr 2004
The idea of fraudulent activity under the Act was confined to actual dishonesty of the defendant in line with Derry v Peek. It should not be extended to include acts which were only fraudulent under wider notions of equitable fraud. In this case assumed undue influence could not be sufficient to come within the section. … Continue reading Mander v Evans: ChD 12 Jul 2001
Insolvency procedure not intended to protect third parties from debts still due. Citations: Times 01-Apr-1996 Statutes: Insolvency Act 1986 1 Jurisdiction: England and Wales Insolvency Updated: 04 June 2022; Ref: scu.83401
Where a bankrupt was joint owner of property abroad but within the European Community, an English court could order the property to be sold and the proceeds paid to the trustee. Such an order could not be made against the land itself, but could be effective against the bankrupt in personam. The bankrupt and his … Continue reading Pollard and Another v Ashurst: ChD 16 Mar 2000
The court considered the application of ‘the bankruptcy template of section 382 to the rules governing the winding up of companies’. Held: The phrase ‘obligation incurred’ in Rule 13.2(1)(b) was inapt to describe a common law duty of care in negligence which existed on and was breached by a company before liquidation, but where actionable … Continue reading In re T and N Ltd and Others (No 3): ChD 16 Jun 2006
Petition praying for (amongst other relief):1.1 The restoration of The People’s Restaurant Group Limited (‘the Company’) to the Register of Companies. 1.2 Its winding-up to take effect retrospectively from 24 June 2010. 1.3 The suspension of any limitation period between the date of its dissolution and the date of determination of the Petition for any … Continue reading Re The People’s Restaurant Group Ltd: ChD 30 Nov 2012
The liquidator of the company sought a declaration that sums received by the defendant sales agents on behalf of the insolvent company were to be paid out to the liquidators in full. The court was asked whether the payments by DWL and PLB made after the termination of the ADA were held on trust for … Continue reading Bailey and Another v Angove’s PTY Limited: ChD 2013
The claimant bank said that the court had had no jurisdiction to make the order it had on the respondent’s bankruptcy, saying that his ‘centre of activity’ had been Germany, and not England. Judges: Purle QC J Citations: [2012] EWHC 2432 (Ch) Links: Bailii Statutes: Insolvency Act 1986 282(1)(a), Council Regulation (EC) No 1346/2000 of … Continue reading Sparkasse Hilden Ratingen Velbert v Benk and Another: ChD 29 Aug 2012
The defendant had been employed as a local government officer, and had accrued pension rights under the statutory scheme. He was made bankrupt, and later made redundant under circumstances triggering payment of the pension. The trustee claimed all or part of the pension. Held: He was entitled to the basic pension, pension lump sum, and … Continue reading Patel v Jones: CA 24 May 2001
(Cayman Islands) The Board was asked whether a debtor or alleged debtor of a company in liquidation can apply for the removal of a liquidator, in whom the creditors and contributors of the company appear to have confidence, on the ground that he is subject to a conflict of interest. Held: A debtor does not … Continue reading Deloitte and Touche Ag v Johnson and Another: PC 10 Jun 1999
Once a case had been referred to the Court of Appeal by the Criminal Cases Review Commission, the court had to make a declaration, even if the case was very old. The effect of the 1998 Act on statute law was not retrospective, but where it affected common law the effect could be retrospective, since … Continue reading Regina v Kansal, on a Reference From the Criminal Cases Review Commission (2): CACD 24 May 2001
The liquidator in a creditor’s voluntary liquidation sought a direction that he could take his costs of pursuing former directors in actions for wrongful trading and preferences, out of realised funds. It was held that nothing in the rules or Act supported the contention that such costs would be expenses of the voluntary winding up. … Continue reading Lewis v Commissioner of Inland Revenue and others: CA 2 Nov 2000
Appeal from refusal of appeal from bankruptcy order. Held: Refused. Judges: Evans, Laws LJJ, Jonathan Parker J Citations: [2000] EWCA Civ 124, [2000] 3 All ER 434, [2000] 3 WLR 495, [2000] BPIR 667 Links: Bailii Statutes: Insolvency Act 1986 271(1)(a) Jurisdiction: England and Wales Insolvency Updated: 31 May 2022; Ref: scu.147157
Appeal against an order of Mr Justice Evans-Lombe on an application made pursuant to section 112(1) of the Insolvency Act 1986 by the joint liquidators of Toshoku Finance UK Plc (‘the Company’) for directions in relation to the discharge of an alleged liability to corporation tax on interest receivable after the commencement of the winding … Continue reading Commissioners of Inland Revenue v Kahn and Another: CA 23 Mar 2000
Citations: [2000] EWCA Civ 46 Links: Bailii Statutes: Insolvency Act 1986 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 Venables, who had owned the shares, had taken an assignment of a cause of action against the football club. … Continue reading Mahomed and Another v Morris and Others: CA 17 Feb 2000
A waste disposal company was in insolvent administration. The Environment Agency sought to prosecute it for breaches of criminal law relating to its licenses. Held: The bar on proceedings against a company in administration operated for criminal as well as civil proceedings. The section was intended to allow the company a breathing space. Nevertheless, a … Continue reading Environment Agency v Paul Clark (As Administrator of Rhondda Waste Disposal Limited): CA 10 Feb 2000
Judges: HHJ Halliwell Citations: [2022] EWHC 1060 (Ch) Links: Bailii Statutes: Insolvency Act 1986 279(3) 366(1) Jurisdiction: England and Wales Insolvency Updated: 31 May 2022; Ref: scu.677539
The claimant alleged malitious prosecution on the part of the revenue. Citations: [2002] EWCA Civ 123 Links: Bailii Statutes: Insolvency Act 1986 282 Jurisdiction: England and Wales Insolvency, Taxes Management Updated: 30 May 2022; Ref: scu.216726
Application for leave to appeal against refusal of appeal against refusal to set aside statutory demand. Refused. Citations: [1999] EWCA Civ 787 Statutes: Insolvency Act 1986 270 Jurisdiction: England and Wales Insolvency Updated: 29 May 2022; Ref: scu.145702
Various applications were made in the insolvency, including for removal of the liquidators and declarations that certain payments were a fraudulent preference on the creditors. Held: No prejudice had been shown by any procedural irregularity. Other creditors should be able to see that there is a proper investigation of relevant matters relating to inter-company transfers, … Continue reading Quickson (South and West) Limited v Stephen Mark Katz, John Stephen Kelmanson (As Joint Liquidators of Buildlead Limited): ChD 25 Aug 2004
Judges: Mr Justice Richards Citations: [2004] EWHC 2361 (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 others ChD 9-May-2003 T and N had exposure to asbestosis claims; these … Continue reading Re Tand N Ltd and Others: ChD 21 Oct 2004
The defendants sought relief for transactions entered into at an undervalue. The bankrupt had entered into charges and an assignment of a loan account in their favour before his bankruptcy, and the trustee had obtained an order for them to be set aside as a fraud on his creditors. Held: To have such orders set … Continue reading Hill (As Trustee In Bankruptcy of Nurkowski) v Spread Trustee Company Ltd and Another: CA 12 May 2006
Where a party’s agreement to an individual voluntary arrangement had been obtained by an advantage offered to that creditor but not disclosed to others, the entire arrangement could be set aside. In this case the offer to purchase a debt after the arrangement was not an ordinary dealing in distressed debt. There was a duty … Continue reading Somji v Cadbury Schweppes Plc: CA 20 Dec 2000
A former partner in a firm could not set off sums due to him from the former partnership, against sums expended by remaining partners in acting to protect partnership property, and claimed from him. There was insufficient mutuality to enforce the set off. The one claim was by partners but as trustees, and the other … Continue reading Hurst v Bennett and Others In Re A Debtor (No 302 of 1997): CA 16 Feb 2001
A right of pre-emption granted over land was property. It had value and was capable of assignment, and was therefore a chose in action. As such it was vested the trustee in bankruptcy on the insolvency of the owner of the right. It may be difficult to value, and might not become exercisable, but it … Continue reading Dear v Reeves: CA 1 Mar 2001
The applicant challenged the independence of the respondent’s disciplinary tribunal. Held: The claim failed: ‘the nature of the Tribunal is entirely adequately independent and impartial for the purposes for which it is constituted. The reasonable by-stander, properly informed of the facts, could not consider otherwise.’ The tribunal had properly considered all the evidence as to … Continue reading Holder v The Law Society: Admn 26 Jul 2005
The High Court or the Court of Appeal should not follow a decision of the Privy Council in place of a decision of the House of Lords, unless the circumstances are quite exceptional and the court is satisfied that in practice the result would be a foregone conclusion Judges: Lord Phillips of Worth Matravers MR, … Continue reading National Westminster Bank Plc v Spectrum Plus Ltd and Others; In re Spectrum Plus Ltd (in liquidation): CA 12 Jul 2004
The plaintiff argued that: ‘Nothing in the wording of section 323 changes the nature of set-off as it operates between solvent parties; it merely widens the categories of claim capable of being, and which must be, set off.’ Held: The decision in Farley was wrong and that the separate causes of action survived the bankruptcy … Continue reading Stein v Blake: CA 13 May 1993
Possible claims against a foreign company for misfeasance, or wrongful or fraudulent trading might be sufficient to justify proceedings here to wind up a foreign registered company. A second requirement is that some person within this jurisdiction would be likely to achieve a substantial benefit from such an action, and third was that some person … Continue reading Stocznia Gdanska SA v Latreefers Inc; In re Latrefeers Inc; Stocznia Gdanska SA v Latvian Shipping Co and others (No 2): CA 15 Mar 2000
A Company Court Judge may not fetter the later use of insolvency interviews by a criminal court. The obligation to give the information will not prejudice the fairness of a possible criminal trial, since the accused would still have the protection of section 78 of the Act of 1984. Judges: Lord Browne-Wilkinson Citations: Independent 26-Jul-1994, … Continue reading Hamilton and Another v Naviede and Director of SFO: HL 26 Jul 1994
Judges: Lord Carloway Citations: [2003] ScotCS 304 Links: Bailii Statutes: Insolvency Act 1986 242 Jurisdiction: Scotland Cited by: See Also – Mathew Purdon Henderson ( Liquidator of Letham Grange Development Co Ltd) v 3052775 Nova Scotia Ltd OHCS 21-Apr-2004 . .See Also – Henderson v 3052775 Nova Scotia Limited IHCS 18-Feb-2005 . .See Also – … Continue reading Henderson CA (the Liquidator of Letham Grange Development Co Ltd) v 3052772 Nova Scotia Limited: OHCS 9 Dec 2003
K had been convicted of two counts of obtaining property by deception contrary to section 15 of the Theft Act 1968. He was also convicted of two counts under the Insolvency Act 1986, namely that being a bankrupt (a) he removed property which he was required to deliver up to the Official Receiver or his … Continue reading Regina v Kansal: CACD 24 Jun 1992
Property had been conveyed to the deceased and the appellant, his widow, to be held as joint tenants. The deceased dies whilst under investigation for defalcations as a solicitor, and an insolvency administration order was obtained in the estate. The wife argued that by the doctrine of survivorship the house was already hers. The administrator … Continue reading Re Palmer (A Deceased Debtor), Palmer v Palmer: CA 6 Apr 1994
The claimants worked for Rotaprint when it went into receivership in 1988, and then for the receiver before being transferred to Pan Graphics. Statutory redundany payments were made on the receivership of Rotaprint. The claimants sought further redundancy payment on the insolvency of Rotaprint. The Secretary now appealed the decision of the EAT that payments … Continue reading Lassman and Others v Secretary of State for Trade and Industry: CA 19 Apr 2000
A retirement annuity or personal pension was part of a bankrupt’s estate before the recent Act, and vested immediately in the trustee on the bankruptcy. As such there was no need to make application to the court under s310 for an income payment order before those assets could be made available to the creditors. Acts … Continue reading Dennison v Krasner, Lesser, Lawrence: CA 6 Apr 2000
The tenant company went into liquidation, the receiver disclaimed the lease, and the landlord claimed compensation under the Act. The question concerned how the compensation was to be calculated. Held: Where a solvent tenant under an onerous lease goes into voluntary liquidation, and the liquidator disclaims the lease, the right to payment of rent disappears, … Continue reading In Re Park Air Services Plc; Christopher Moran Holdings Ltd v Bairstow and Another: HL 4 Feb 1999
A bankrupt was suspected of disposing of his assets to avoid a confiscation order. The trustee in bankruptcy obtained an order for the bankrupt’s post to be diverted to her whilst he was in prison. She opened all post and copied it before forwarding it to the bankrupt. This included correspondence with his legal advisers. … Continue reading Foxley v United Kingdom: ECHR 20 Jun 2000
A creditor’s claim to set aside an insolvent debtor’s transaction as being at an undervalue could not be pursued to benefit that creditor alone, and a plaintiff was not entitled to his full judgment and costs. A conspiracy claim was hard to establish. Citations: Times 26-May-1999 Statutes: Insolvency Act 1986 423 Jurisdiction: England and Wales … Continue reading Dora v Simper and Others: ChD 26 May 1999
The requirement that a statutory demand must be signed by someone claiming authority of the creditor to sign it could be satisfied by someone who in fact did have authority in law to make the demand. The rules should be read according to its purpose. Judges: Morritt, Chadwicj LJJ, Charles J Citations: Times 14-Jun-2000, [2000] … Continue reading Dacorum Borough Council v Horne: CA 26 May 2000
Where an ailing company continued to trade, section 127 operated as between the company and its directors and creditors, and not so as to invalidate payments made by the company’s bank on cheques drawn before the date of presentation of the petition, and honoured before the date of the winding up order. Accordingly when an … Continue reading Coutts and Co v Stock: ChD 24 Nov 1999
Challenge to an unfair preference under section 243 of the 1986 Act Citations: [2000] ScotCS 209 Links: Bailii Statutes: Insolvency Act 1986 243 Jurisdiction: Scotland Cited by: Cited – MacDonald and Another v Carnbroe Estates Ltd SC 4-Dec-2019 ‘This appeal concerns the Scots law of gratuitous alienations on insolvency. It raises three principal questions. First, … Continue reading Baillie Marshall Ltd and Another v Avian Communications Limited: SCS 21 Jul 2000
A claim for an indemnity was made by two council officers who were also directors of a company set up by the local authority to finance and manage a waterpark for the public. The project failed and the company went into liquidation. The liquidator brought proceedings to recover substantial sums from them under the Insolvency … Continue reading Burgoine and Another v Waltham Forest London Borough Council and Another: ChD 7 Nov 1996
The rule which prevents a company in administration being prosecuted without the leave of the court, was not intended only to restrict creditors. Here another company wanted to bring patent infringement proceedings, but were first to be required to obtain the court’s consent. Citations: Times 25-Nov-1999, Gazette 25-Nov-1999 Statutes: Insolvency Act 1986 11(3)(d) Insolvency, Litigation … Continue reading Biosource Technologies Inc v Axia Genetics Plc (In Administration): ChD 25 Nov 1999
The Regulation under question was procedural;, and a failure to comply with its requirements was not to be deemed fatal. The requirement for a trustee to identify the transactions to be set aside did not require every single part of the scheme to be detailed, provided as in this case the purpose of the scheme … Continue reading Ashe v Mumford and Others: ChD 7 Mar 2000
The second defendant, a solicitor, had fraudulently taken money from trusts, and paid money into trusts for his own family. It was claimed that the payments were intended to defeat the recovery of the funds. The trustees sought protection on costs through a Beddoe application. Held: Trustees who sought directions from the court on whether … Continue reading Alsop Wilkinson v Neary and Others: ChD 4 Nov 1994
The collector of taxes distrained on the goods of the company under section 61 TMA 1970 for unpaid taxes and the company entered into a walking possession agreement. Before the collector had sold the goods, and completed the distress, the company entered into voluntary winding-up and a liquidator was appointed. There was a deficiency of … Continue reading Herbert Berry Associates Ltd v Inland Revenue Commissioners: ChD 1976
The Plaintiff was the landlord of certain premises and had as at 29 September 1938, a right to distrain for unpaid rent in the sum of andpound;15 11s. However, on 20 September, the defendant, as bailiff for Wolverhampton Corporation, had levied on the tenant under a warrant for distress for rates granted by a justice … Continue reading Potts v Hickman: HL 1941
Judges: Millett J Citations: [1993] 1 WLR 314 Statutes: Insolvency Act 1986 375 Jurisdiction: England and Wales Cited by: Cited – Papanicola v Humphrys and Others ChD 14-Mar-2005 The bankrupt had continued to run his restaurant for a year, by having another company collect his receipts for him. The trustee had obtained a declaration that … Continue reading In re a Debtor (No 32 SD 1991): ChD 1993
The section provided sufficient power to allow a court to appoint a new liquidator in the case of a company’s liquidation. Though there is no express power, one is assumed within the insolvency rules. Judges: Harman J Citations: Unreported, 1993 Statutes: Incolvency Act 1986 393, Insolvency Rules 4.116(6) Jurisdiction: England and Wales Cited by: Cited … Continue reading In re Parkdawn Ltd: ChD 1993
Tne question of whether there was at any time ‘pending court proceedings’ was answered by asking if there existed a court file. The section empowered a court itself to appoint another trustee in bankruptcy. Section 41 of the 1984 Act could be used by the HighCourt to take some control over proceedings for an individual … Continue reading Re Bullard and Taplin Ltd: ChD 1996
Section 183 of the 1986 Act, which precludes a creditor who levies execution or attaches a debt after commencement of a winding up, from retaining the benefit of his execution or attachment, does not apply to executions or attachments in foreign jurisdictions. Judges: Blackburne J Citations: [1997] 1 BCLC 673 Statutes: Insolvency Act 1986 183 … Continue reading Mitchell v Carter: ChD 1997
A receiver of a companies assets, who employed former staff of the company, beyond an initial period of 14 days, becomes personally responsible for their employment contracts, and consequently becomes liable for making redundancy payments. The 1870 Act could be used to determine arrears of salary attributable to the period prior to the administrators’ appointment.Lord … Continue reading Powdrill and Another v Watson and Another: HL 23 Mar 1995
No mandatory set off on liquidation without the requirement for mutuality. The Court accepted a proposition that a chargeback arrangement was inefficiency, no implication followed as to the recourse against the Depositor of a collateral security. Citations: Times 08-Jan-1996 Statutes: Insolvency Rules 1986 4.90 Jurisdiction: England and Wales Cited by: Cited – Tam Wing Chuen … Continue reading Morris and Others v Agrichemicals Ltd and Others: CA 20 Dec 1995