Kandola v Mirza Solicitors LLP [2015] EWHC 460 (Ch)
A recent decision of HHJ Cooke in the Chancery Division of the High Court in Kandola v Mirza Solicitors LLP [2015] EWHC 460 (Ch) has provided some useful guidance on solicitors' duties to advise as to the risk of insolvency of the vendor when acting for purchasers in property transactions where deposits are held as agents for the vendor. It also provides guidance on solicitors' duties generally when advising on risks in transactions.
The Facts
Court of Appeal orders disclosure in relation to freezing order and cross-undertaking from a liquidator
Key Point
Her Majesty's Revenue & Customs ("HMRC") were not immune from the requirement to give an undertaking for damages suffered where a provisional liquidator was appointed based on HMRC allegations of fraud and tax evasion.
The Facts
Creditors have the right to challenge the remuneration and expenses of appointed administrators through the Court. There is a procedure set out in Rule 2.109(1B) Insolvency Rules including a time limit by which such a challenge should be made. The Court has a discretion to extend the time limit but in what circumstances will the Court exercise its discretion?
Key Point
The mere fact that the law of the country in which an asset is situated does not recognise the trust concept does not necessarily invalidate the trust at least as far as English Courts are concerned.
The Facts
The administrators of collapsed forex currency broker Alpari (UK) have announced that the creditors’ meeting will be held on 12 March. See the link below for further details.
An action has successfully been brought by the administrators of Questway Limited, Oceancrown Limited and Loanwell Limited (all in administration) against Stonegale Limited and Norman Ralph Pelosi (the sole shareholder and director of Stonegale Limited) to reduce alienations of properties in Glasgow, under s.242(1) of the Insolvency Act 1986 (the “Insolvency Act”).
A new Statement of Insolvency Practice (SIP16) is expected to be published in March 2015, aimed at improving the framework and operation of pre-pack administrations. This follows the Graham Review, and its report published in June 2014. In this article, we explore the existing pre-pack structure, its shortcomings and how the changes expected might affect insolvency practitioners and their insurers.
Background
Health Warning: This Blog may not be historically accurate
If, like me, you have recently attended one of the many St Patrick’s Day parades that have taken place across the UK and worldwide, you are no doubt acutely aware that St Patrick was a polyester clad leprechaun with a penchant for drinking Guinness and turning rivers green. However, it may come as a shock to learn that St Patrick was also a dyed-in-the-wool insolvency litigator.
The Government has, today, announced that the Legal Aid, Sentencing and Punishment of Offenders (LASPO) Act 2012 reforms for insolvency proceedings are being delayed for the time being, and will therefore not come into force on 1 April 2015.