The Facts
A liquidator applied for permission to amend his claim for fraudulent trading. The claim against the respondents related to purported defrauding of HMRC for non-payment of VAT.
Key points
Once clear that an action is improperly constituted, it should not be allowed to proceed.
Those in control of a company have the duty to manage that company in accordance with its constitution.
The Facts
Key points
Failure to comply with sections 333 and 363 of the Insolvency Act constitutes contempt of court for which a committal order may be obtained.
A trustee in bankruptcy should not usually require permission to apply for a committal order.
Correct procedure for application confirmed by the court.
The facts
The Applicant granted two guarantees to a bank in 2006 and 2007 in respect of two facility letters. The bank assigned the Second Facility and the benefit of the First Guarantee to the Respondent. The amounts due under the Second Facility fell due for payment on 31 March 2008 and were only demanded for payment in 2015.
Key points
Information obtained by compulsion can be shared between officeholders of connected estates (parent/subsidiary)
There must, however, be a possibility that there will be a surplus in the subsidiary estate
The prospect must be real as opposed to fanciful
The facts
Key points
Where the underlying liability on which a bankruptcy order is made is subsequently set aside, the correct remedy is rescission under s.375(1) of the Insolvency Act 1986.
Annulment under s.282(1)(a) is the appropriate remedy when, on grounds existing at the time of making the bankruptcy order, the order ought not to have been made.
The facts
Key points
The Court of Appeal confirmed that there is a complete statutory code for the payment of interest.
Statutory interest represents compensation for dividends paid after the administration, and does not depend on any right to interest under the underlying claim.
Regard can be had, however, to the rate at which interest would have been paid to the creditor after the administration.
The facts
Key points
Payments under a remuneration scheme did not constitute dividends, as the formal decision to categorise them as such was taken by an accountant at the end of the year.
Assignments of claims should expressly include all claims which can be made under that assignment in order for title to pass.
The facts
Key points
Court reiterated circumstances in which it will sanction a proposed course of action by administrators
Requirement that the course of action be “particularly momentous”
Court sanctioned proposed settlement in the circumstances
The Facts
Key point
In certain circumstances the court will look to parallel statutory provisions where existing applicable statute does not accommodate the situation, as long as the latter is not offended, expanded or altered by doing so.
The facts
This application for directions was brought by the administrators of Lehman Brothers Europe Ltd (the “Company”) on: