Court of Appeal orders disclosure in relation to freezing order and cross-undertaking from a liquidator
Whether insurer liable to repay purchasers’ deposits following dissolution of developer/policy interpretation
Historically, HMRC has allowed insolvency practitioners to, at an early stage following their
appointment, cancel the VAT registration of the insolvent business. Practitioners have then been
entitled to account for VAT on any subsequent supplies using HMRC’s form VAT 833 (Statement of
Value Added Tax on goods sold in satisfaction of a debt).
In Bailey & Others (Joint Liquidators of D&D Wines International Limited) v Angove’s Pty Limited1, the Court of Appeal overturned a decision of the High Court, and so permitted the liquidator of an insolvent agent to recover funds due to it from end-customers despite the agency having been terminated.
Background
The Supreme Court has today ruled on the ranking of certain pension liabilities when issued to companies in administration or liquidation.
Although only a few weeks old, 2013 has already seen HMV, Jessops and Blockbuster enter administration, joining last year's failures, which included Comet, Clinton Cards and Peacocks. Given the number of premises these companies occupy across the UK, landlords of retail premises will inevitably be affected.
This is the third of a series of four e-bulletins in relation to administrations and company voluntary arrangements (CVAs).