In another case involving a winding-up petition, the petition was dismissed, after the court found there was a dispute as to whether the statutory payment scheme applied to the contract. The contractual arrangements between the parties were not formally documented, but there was a basic agreement as to the scope and price of the works, which arose out of a subcontract between Ro-Bal and main contractor McAlpines to provide fabrication and erection of steelworks at two sites. At one site the works were completed and paid for, but at the other there was a dispute regarding payment
Key points
- Principles applying to exercise of liquidators’ powers are the same as those prior to legislative changes
- Views of creditors influenced by personal considerations to be disregarded
- The overriding requirement is for liquidators to exercise their professional judgment in the best interests of creditors
The facts
Key Points
- Test for personal service of bankruptcy petition same as for claim forms
- Document to be handed to debtor or contents explained and left “with or near” debtor
- Rule 7.55 can be used to remedy any irregularity in service if necessary
The Facts
Key Points
- Court considers the impact of the Spanish Insolvency Act on guarantees governed by English law
- Court holds that the liability under the guarantee was not extinguished
The Facts
Key Points
- An administrator may be able appeal an order restoring a company following dissolution
- The court has jurisdiction to backdate a winding up order made following restoration to the date of dissolution
- The court must exercise its discretion to do so with extreme caution
The Facts
Client Connection Limited (“Company”) was placed into administration and Ms Sharma (“A”) was appointed as administrator. Following a pre-pack sale of the business of the Company, A moved the Company to dissolution.
Here the Court of Appeal granted an injunction which restrained a building contractor (Harbour View) from presenting a winding-up petition, overturning the high court's decision at first instance. Harbour View had been engaged under two separate contracts based on a JCT Intermediate WCD (2011) to carry out works at two separate sites. The employer (Wilson) failed to pay against two interim certificates (August 2013 and September 2013), leaving a sum of over GBP 1.6 million owing.
Key Points
- Court considers the ownership of assets situated at premises owned by the bankrupt in the context of limited relevant evidence
- Court emphasises the importance of joining the correct parties to litigation
The Facts
Key points
- Section 236 (inquiry into company’s dealings) does not have extra-territorial effect
- Section 237(3) (examination) only has extra-territorial effect where appropriate machinery exists in the foreign jurisdiction
- Taking of Evidence Regulation not available where litigation not commenced or contemplated
The facts
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
Key Points
- The principle of modified universalism (being the principle underlying the common law power to assist foreign insolvency proceedings) continues to exist
- There is a common law power to order production of information to assist foreign insolvency proceedings
- Common law assistance does not enable office holders to do something they would not be able to do under the insolvency laws by which they are appointed
The Facts