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Insolvency Law

Expert guidance on all aspects of corporate and personal insolvency

12 JUL 2013

(1) Hunt (2) Hunt v Conwy County Borough Council [2013] EWHC 1154 (Ch)

(Chancery Division, Sir William Blackburne, 8 May 2013)

Land owned by Mr H vested in his trustee in bankruptcy. After the local authority declared the property dangerous, the trustee disclaimed it, having issued possession proceedings in relation to it in the meantime. As a result, the freehold of the land vested in the Crown. Mr H and Mrs H sought vesting orders under s 320 of the Insolvency Act 1986. The judge dismissed their applications for summary judgment. Mr H had not proved that the property was a dwelling house, since the dwelling formed only part of the property. Mrs H had not proved that she had any interest derived from a contribution to the purchase price. Sir William Blackburne allowed Mr H's appeal but dismissed Mrs H's appeal. The judge dismissed the assertion that the trustee's issuing of proceedings to recover possession of the property was for the purpose of extending time pursuant to s 283A of the Insolvency Act 1986, and so that the property had revested in Mr H anyway. However, the powers under s 320 did not necessarily relate to all the disclaimed property, and could be used in relation only to part. Mr H's application would be remitted to consider whether a vesting order should be made over the whole or part of the property, or at all. Mrs H had not demonstrated an interest in the property.

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