Background

The bankrupt and her husband, the appellant, were joint tenants of a business premises pursuant to an underlease. The trustee in bankruptcy disclaimed ‘all my/our interest in Leasehold property under the terms of the [underlease] in respect of [the property]’.

Appellant’s Case

The appellant contended that the disclaimer operated such as to prevent the landlords from claiming for rent in the bankruptcy estate post disclaimer.

Landlords’ Case

Key Point

In certain circumstances, a purchaser’s deposit may constitute an equitable lien upon the liquidation of the seller.

The Facts

An application under s112 IA 1986 was made by the joint liquidators of Alpha (Student) Nottingham Ltd to determine whether the purchasers of unbuilt flats had the benefit of equitable liens, and therefore ranked as secured creditors in the liquidation.

Summary

A liquidator rejected creditors’ claims. The creditors successfully appealed that decision and sought the costs of that application from the liquidator personally under rule 4.83 of the Insolvency Rules 1986 (as it then was) on the assertion that the reason the liquidator rejected the claims was that they exceeded the value of a potential misfeasance claim against the creditors and he did not want set off to defeat the misfeasance claim.

Creditors’ Case

Key Points 

• Claims against Kaupthing could not be pursued in the English courts

• No implied restriction on jurisdictional effect under the Winding-up Directive

• Position analogous to Judgments Regulation and Insolvency Regulation

The Facts

The Facts

A debtor entered into an IVA with his creditors. He complied with the terms of the IVA and a certificate of compliance was issued by the IVA supervisor. Subsequently, the debtor received two PPI settlement payments from banks. The supervisor applied to court for directions as to whether the payments were caught by the trust created by the IVA. The Deputy District Judge held not and the High Court agreed on appeal. The supervisor was given permission to appeal to the Court of Appeal.

The Decision

Key point

• A recalibration of the issues to be considered when adjudicating on COMI in individual bankruptcy.

The Facts

Since 6 April 2016 debtors apply online to be made bankrupt, rather than petitioning the court. Their application is considered by an adjudicator who, if deemed appropriate, will make the bankruptcy order.

The Facts

The liquidator of a company refused to requisition a meeting of creditors on the basis that it was being called by the potential defendants to actions arising out of his investigations with the purpose of removing him and stymying any claims. The liquidator applied to Court for a direction not to summon the meeting.

The Decision

Key Points

Summary

Clarification on when the court should lift the administration moratorium in respect of litigation.

The Facts

The Facts

The applicants, who had successfully appealed the rejection of their proof of debt by the liquidator of Burnden Group Limited, sought an order that the liquidator pay their costs of the appeal personally in circumstances where the relevant company had no assets and their costs exceeded £290,000 (including VAT).

The Decision