The judgment of Chief ICC Judge Briggs in Re Zhang Zhenxin (Deceased); Eternity Sky Investments Ltd v The Estate of Zhang Zhenxin (Deceased) and Anor [2023] EWHC 2744 (Ch) is of interest because, as the judge himself remarked, there is little authority on the appointments of interim receivers in cases of individual insolvency; and for that matter there is little on the administration of the estates of deceased insolvents, that being the condition of the debtor in this case.

If an employer intends to make 20 or more employees redundant, at one establishment, within a 90-day period, they must notify the Secretary of State at least 30 days before the first dismissal, as per Section 193(2) of the Trade Union and Labour Relations (Consolidation) Act 1992 (“TULRCA”). Failure to adhere to this requirement is a criminal offence. This legislation has been of great concern to insolvency practitioners who are often dealing with companies in a precarious position and do not have the luxury of time to comply with Section 193(2) TULRCA.

Dispute Resolution analysis: In a second appeal, the Court of Appeal has upheld the decisions of two lower Courts in concluding that due to the conduct of a bankrupt and his insolvency, his bankruptcy should not (on an exercise of discretion) be annulled, despite concluding that the bankruptcy order should not have been made.

Khan v Singh-Sall and another [2023] EWHC 1119 (Ch)

What are the practical implications of this case?

Under the Insolvency Act 1986 (IA 1986), office-holders are given wide powers but they are subject to the control of the court. In order to allow insolvency practitioners to carry out their duties efficiently and without having constantly to look over their shoulders, this control has always been exercised with a light touch. In recent years there have been several important cases examining these issues.[1]

ICC Judge Mullen’s decision in Sunset Ltd & Anor v Al-Hindi [2023] EWHC 2443 (Ch) emphasises the importance of ensuring the existence of a debt capable of forming the basis of a bankruptcy petition at the time of presentation.

The petition in this case was presented against Mr Al-Hindi by Sunset Limited and Morville Limited on 23 June 2022 based on his failure to comply with statutory demands dated 29 March 2022 claiming £248,750 said to be due by way of unpaid rent under leases of four London properties.

After the tumult of the past few years, with emergency legislation being introduced to mitigate the impact of the Covid-19 pandemic, the last few months have felt relatively quiet in terms of new legislation. That said, there have been a number of important government publications in relation to the insolvency industry, and it appears that change is on the horizon.

In Secretary of State for Business, Energy And Industrial Strategy v Barnsby [2022] EWHC 971 (Ch) ICC Judge Barber imposed a seven year disqualification period on the defendant arising out of his conduct as a director of Pure Zanzibar Ltd. Her latest judgment in the same case ([2023] EWHC 2284 (Ch)) deals with the Secretary of State’s claim for a compensation order under section 15A Company Directors Disqualification Act 1986.

Restructuring & Insolvency analysis: Upon an application for an administration order the court exercised its discretion and concluded that a winding up order was more appropriate. The court was satisfied that the Respondent company was insolvent but could not see why administration would fulfil one of the statutory purposes.

Re Aartee Steel Group Ltd [2023] EWHC 1701 (Ch)

What are the practical implications of this case?

Substitution first, standing later- a decision of Chief ICC Judge Briggs regarding supporting creditors and substituting as petitioner

Dispute Resolution analysis: In a case where a bankruptcy was annulled on the basis that the alleged tax liability was ill-founded and misconceived, HMRC has been ordered to bear the OR’s and the trustees’ costs of the bankruptcy.

Re Adjei [2023] EWHC 1553 (Ch)

What are the practical implications of this case?