Key points
- Without notice applications for recognition orders carry the obligation of full and frank disclosure to the English court in relation to the effect such orders may have on third parties.
- Failure to provide full and frank disclosure may have cost consequences.
The facts
Key point
- Purely voluntary redress payments are not caught by a paragraph 99 charge
The facts
Key Points
- Agreement to submit to jurisdiction can be implied or inferred into a contract, but there must be actual agreement to submit. Circumstance (e.g. a contract being made in a particular country) is not enough to infer submission to jurisdiction.
- Jurisdiction agreements apply to contracts, not insolvency office holder claims.
The Facts
Key Points
- Test for personal service of bankruptcy petition same as for claim forms
- Document to be handed to debtor or contents explained and left “with or near” debtor
- Rule 7.55 can be used to remedy any irregularity in service if necessary
The Facts
Key point
An assignee of future debts was bound by discounting and rebate arrangements concluded between the assignor and its customers despite having given notice of the assignment.
The facts
M supplied goods to customers. It factored its debts to Bibby in 2000. The Factoring Agreement provided that all future debts due to M by customers were to vest upon their creation in Bibby.
Bibby did the following to try and protect its position – ultimately the steps proved unsuccessful:
Key Point
The word “advance” does not automatically imply an obligation to repay the funds advanced, nor does it automatically imply a repayment trigger.
The Facts
Key point
Whilst a winding up petition is not the appropriate forum to conduct a “mini trial”, the court is not bound to dismiss the petition if the dispute raised by the debtor company lacks substance.
The facts
Key point
The Court has discretion to suspend time for the purposes of limitation periods when exercising its jurisdiction to restore a company to the register.
The facts
The former director of a dissolved company applied for an order restoring the company and, so that it could then bring claims against third parties that had expired, suspending the running of time during the period when it was dissolved.
The decision
In March 2015 the coalition government issued a call for evidence to understand in more detail the employee consultation process when a company is facing insolvency. Last month the government issued its Response. This attracted 28 responses from organisations including law firms, trade unions, insolvency practitioners and professional bodies.
Insolvency practitioners (‘IP’s) tasked with dealing with an often failing business for the purposes of protecting creditors’ interests face a number of issues. The Regulator has sought to provide clarity in two particular areas that IPs come across in their work by issuing notes (the ‘Notes’) on these issues (September 2015).
Trustee Appointments