Key point
A winding up petition founded on a tax assessment, which is the subject of an appeal to the Tax Tribunal, should be dismissed or stayed pending the appeal.
The facts
Key points
- In order to rescind a winding up order the court must be satisfied that the circumstances of the case are materially different to those before the court that made the winding up order.
- A stay of a winding up order would not be made as an alternative route was available.
Facts
Key points
- Section 306 of the Insolvency Act 1986 (“1986 Act”) provides that a bankrupt’s estate shall vest immediately in the trustee in bankruptcy and no registration is required to effect that vesting;
- A bankrupt’s tenancy had vested in the trustee so that the bankrupt was no longer the qualifying tenant for the purposes of enfranchisement under the Leasehold Reform Act 1967 (“1967 Act”).
The facts
From 6 April 2014 Industrial and Provident Societies (IPSs) will be able to enter administration or make a voluntary arrangement with creditors. Formerly winding up was the only option for an insolvent IPS.
This is a significant development as it extends the corporate rescue culture to these societies, which would otherwise face closure in times of financial distress.
What is an Industrial and Provident Society?
On 24 February 2014 the Court of Appeal delivered its long awaited judgment in the GAME Group litigation (Pillar Denton Limited & Ors -v- Jervis & Ors).
This is an extremely important decision and will affect every trading administration where the company is a tenant.
18 December 2013
[2013] EWCA Civ 1626
Court of Appeal (Rimer, Kitchin, Christopher Clarke LJJ)
Whether landlords' rights to seek specific performance of an agreement to surrender leases survived an intervening insolvency
16 December 2013
[2013] EWHC 4287 (Comm)
Commercial Court, Queen's Bench Division (Burton J)
Foreign trustee-in-bankruptcy personally liable for costs of restraining foreign insolvency proceedings, on an indemnity basis
The UK Court of Appeal has swept aside existing rules governing when administrators have to pay advance rents falling due before their appointment.
In what will be seen as a significant victory for landlords, the Court held on 24 February 2014 that it was not open for administrators to enjoy a rent free period simply because they were appointed just after a quarter day. The decision will have major implications for the planning and implementation of corporate insolvencies and looks set to transform the relationship between insolvency practitioners and the property industry.
15 November 2013
[2013] EWCA Civ 1408
Court of Appeal (Elias, Kitchin, McCombe LJJ)
No recovery if the company has not "entered into" the transaction at an undervalue
In Re Ovenden the Court of Appeal decided that a payment made by a trustee of company money to a third party, without the company’s involvement, could not be a transaction at an undervalue under section 238 of the Insolvency Act 1986 because it was not a transaction entered into by the company.
13 November 2013
[2013] EWCA Civ 1410
Court of Appeal (Maurice Kay VP, Beatson and Briggs LJJ)
Dismissing employees of an insolvent company: when is it unfair?
In Kavanagh v Crystal Palace, a number of employees of Crystal Palace football club claimed that they had been unfairly dismissed within the meaning of the Transfer of Undertakings (Protection of Employment) Regulations 2006 (‘TUPE 2006’). The Court of Appeal considered the tension between TUPE 2006 and the insolvency regime.