ICC Judge Burton’s judgment in Dale & Ors v BDO LLP (Re NMCN PLC and NMCN Sustainable Solutions Ltd) [2025] EWHC 446 (Ch) follows an administrators’ application under ss 235 and 236 Insolvency Act 1986 for the former company auditors, BDO LLP, to deliver up audit files for 2018 and 2019 to enable the administrators to investigate whether BDO had breached duties owed to the companies. The application was resisted. The points of contention were:
(1) whether, as the companies’ auditors, BDO were an “officer” for the purposes of s 235;
The judgement of Hodge Malek KC, sitting as a deputy High Court judge, in Marko Ventures Ltd v London Antiaging Clinic Ltd [2025] EWHC 340 (Ch) deals with a contested application for an administration order under para 12(1)(c) Sch B1 Insolvency Act 1986. The order appointing joint administrators was sought in respect of London Antiaging Clinic Ltd by Marko Ventures Ltd, the majority shareholder in and principal funder of the company, which runs a health, beauty and wellbeing clinic in London.
On 26 February 2025, Deputy Master Scher handed down judgment in the case Suman Bhatia v Christopher Purkiss, as liquidator of JD Group Limited [2025] EWHC 359 (Ch). Wedlake Bell LLP (partner Edward Saunders), and Nora Wannagat (Tanfield Chambers) acted for the successful liquidator.
A copy of the judgment is available here.
Background
Starting life as a market trader, Balvinder Shergill went on to run a number of companies, mostly in the furniture business. Two of his early companies used the trading style Houghton Furnishing. After they stopped doing business, Mr Shergill went on to become involved as a director in five other companies.
Section 216 Insolvency Act 1986 provides that a person who has been a director of a company at any time in the 12 months before it goes into insolvent liquidation is prohibited for five years from being a director of, or directly or indirectly being concerned in or taking part in, the promotion, formation or management of a company with the same or similar name to the liquidated company (a “prohibited name”). Section 217 imposes personal liability on a director for debts incurred by a company which acts in breach of s 216.
On July 14, the U.S. Court of Appeals for the Ninth Circuit partially affirmed and partially reversed a district court’s dismissal of an FDCPA suit. The district court reviewed plaintiff’s claims under the FDCPA, which alleged that defendants violated the bankruptcy court’s order discharging his debt and knowingly filed a baseless debt collection lawsuit.
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Earlier this year, the United States Bankruptcy Court for the Northern District of California granted in part and denied in part cross-motions for summary judgment in an action concerning “piecemeal exemptions” to California’s usury law.
On August 8, the California Department of Financial Protection and Innovation (DFPI) issued a desist and refrain order to a now-bankrupt cryptocurrency lender and its CEO after determining that the company allegedly made material misrepresentations and omissions in the offering of crypto interes
On May 6, the U.S. Court of Appeals for the First Circuit reversed a district court’s decision, ruling that American tribes are not exempt from federal law barring suits against debtors once they file for bankruptcy.