Supreme Court clarifies law in relation to repudiation of leases (Re Linen Supply Ireland Ltd, 10 December 2009)
The Supreme Court has recently clarified the law in relation to a company’s ability to repudiate/disclaim leases during the course of an examinership. Recent decisions of the High Court, including the O’Brien’s Sandwich Bar decision had created uncertainty in this area.
Last week the Supreme Court overturned Mr Justice McGovern's recent decision in the Linen Supply of Ireland examinership that the current legislation does not permit the repudiation of leases in an examinership. The case has now been remitted back to the High Court to consider whether, in the specific case before it, the leases ought to be repudiated in order for a scheme of arrangement to be formulated.
In a recent decision of the Supreme Court in the Matter of Linen Supply of Ireland Limited (the “Company”) and the Companies (Amendment) Act 1990 (as amended), the Court finally clarified the law in relation to a company’s ability to repudiate and/or disclaim leases during the course of an examinership process. Earlier decisions of the High Court, including quite recently the O’Brien’s Sandwich Bar decision, had created uncertainty in this area.
Bell Lines Limited (in Official Liquidation)
LK Shields Solicitors acted for the Secretary of State for the Department of Business Innovation and Skills of the Government of the United Kingdom (the Secretary of State) in a Supreme Court Appeal which raised a succinct technical point in a liquidation.
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In Prest v Petrodel Resources Limited (in Liquidation)(1) the Manx court recently confirmed that where security for costs orders is appropriate, the amount ordered will not always be restricted to a sum representing the extra costs incurred in enforcing an order in the jurisdiction in which the claimant is resident or in which assets are situated.
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According to a ruling handed down recently by the Israeli Supreme Court, when a real estate asset is sold before the seller enters bankruptcy proceedings, and the seller has not paid the betterment tax, the local council is not obligated to grant the buyer approval for registering the property under his name. Thus, the buyer will be required to pay the betterment tax.