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Insolvency Law

Expert guidance on all aspects of corporate and personal insolvency

21 MAY 2013

Appleyard (Trustee in Bankruptcy of Wewelwala) v Wewelwala [2012] EWHC 3302 (Ch); [2013] BPIR 15

(Chancery Division, Briggs J, 23 November 2012)

The debtor successfully appealed against a bankruptcy order, but the trustee in bankruptcy was not informed and he continued to incur costs. On an application for directions, Briggs J held that, having regard to the similar jurisdiction in relation to annulments considered in Butterworth v Soutter [2000] BPIR 582, Thornhill v Atherton [2004] EWCA Civ 1858; [2005] BPIR 437 and London Borough of Redbridge v Mustafa [2010] EWHC 1105 (Ch); [2010] BPIR 893, the trustee's right to recover his expenses, having acted entirely properly and innocently had to prevail over the debtor's right to enjoy to the full her estate upon its re-vesting in her as a result of the setting aside of the bankruptcy order. The debtor ought to bear the burden of compensating the trustee for his reasonable expenses incurred until he learned of the setting aside of the bankruptcy order and her property would stand charged with payment of the trustee's reasonable expenses until then; thereafter, he should have incurred no further expense without first applying to the Court for directions. 

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