Latest BPIR - some interesting cases selected by the Editors

04 MAY 2010

The Daily Telegraph have published an interesting piece on personal insolvency. Jordan Publishing have also published the latest edition of the BPIRs. The volume contains some interesting cases. These are:

Ailyan and Fry (Trustees in Bankruptcy of Kevin Foster) v Smith and Others [2010] EWHC 24 (Ch) [2010] BPIR 289

ChD, His Honour Judge David Cooke sitting as a High Court judge, 8 January 2010

- BANKRUPTCY - Transactions at undervalue - Whether debtor entered transaction - Whether at relevant time - Whether transaction at significant undervalue - Remedies


Delaney v Chen and Another [2010] EWHC 6 (Ch) [2010] BPIR 316

ChD, His Honour Judge Purle QC sitting as a High Court judge, 8 January 2010

- TRANSACTIONAL AVOIDANCE - Transaction at an undervalue - Insolvency Act 1986, s 423


Freeburn v Hunt [2010] BPIR 325

ChD, Mr Registrar Jaques, 20 May 2009 19 November 2009

- BANKRUPTCY - Remuneration of trustee in bankruptcy - Legal costs incurred by trustee in bankruptcy - Creditor's challenge to remuneration and costs - Insolvency Act 1986, s 303 - Insolvency Rules 1986, rr 6.138, 6.142


GFN SA, Artag Meridian Ltd and Caribbean Energy Company v The Liquidators of Bancredit Cayman Ltd (In Official Liquidation) [2009] UKPC 39 [2010] BPIR 344

PC, Lord Scott of Foscote, Lord Rodger of Earlsferry, Baroness Hale of Richmond, Lord Neuberger of Abbotsbury and Sir Jonathan Parker, 4 November 2009

- CAYMAN ISLANDS - Liquidation - Application to reverse liquidators' rejection of proof - Application to expunge admitted creditors' proofs - Nature of the applications - Whether court to consider liquidators' application for security for costs


Lacontha Foundation v GBI Investments Ltd [2010] EWHC 37 (Ch) [2010] BPIR 356

ChD, Warren J, 15 January 2010

- PETITION - Winding up - Whether debt disputed on bona fide and substantial grounds - Whether winding-up order to be made even where debt disputed - Insolvency Act 1986, ss122(1)(e), (f), 123(2), 124(1)


MFP Foundations & Piling Ltd v Shaw and Shaw [2010] EWHC 9 (Ch) [2010] BPIR 397

ChD, His Honour Judge Stephen Davies sitting as a High Court judge, 6 January 2010

- STATUTORY DEMAND - Application to set aside statutory demand - Construction adjudication - Judgment enforcing the adjudicator's decision - Cross-claim


Michael, Re (A Bankrupt); Hellard v Michael and Fairview New Homes Farnborough Ltd[2009] EWHC 2414 (Ch) [2010] BPIR 418

ChD, Sales J, 16 July 2009

- BANKRUPTCY - Trustee in bankruptcy - Assets - Disposal of assets by bidding process - Whether bidding process fair to each bidder - Terms of revised bidding process - Circumstances in which the court will interfere with the trustee's commercial judgment - Extent and nature of court's supervisory justification over trustees in bankruptcy - Insolvency Act 1986, s 303(1), (2)


Nottingham City Council v Pennant [2009] EWHC 2437 (Ch) [2010] BPIR 430

ChD, His Honour Judge Purle QC sitting as a High Court judge, 23 April 2009

- BANKRUPTCY PETITION - Petition adjourned to allow debtor to pay council tax arrears by instalments - Whether adjournment was appropriate.

- BANKRUPTCY PETITION - Petitioner refuses offer from debtor to repay debt by instalments - Whether rejection of offer was reasonable


Parkinson Engineering Services plc (In Liquidation) v Swan and Yeldon [2009] EWCA Civ 1366 [2010] BPIR 437

CA, Sedley, Lloyd and Sullivan LJJ, 21 December 2009

- ADMINISTRATORS OPERATING UNDER FORMER PART II OF INSOLVENCY ACT 1986 - Release - Ability of later liquidator to pursue proceedings for alleged misfeasance

- MISFEASANCE PROCEEDINGS - Proceedings against administrators originally commenced in name of company - Proceedings were flawed because administrators had secured release - Liquidator then sought leave to amend proceedings to be substituted as claimant - Whether substitution appropriate


Rawnsley and Canal Dyeing Company Ltd (In Liquidation) v Weatherall Green & Smith North Ltd and Peter O'Hara (Liquidator of Canal Dyeing Company Ltd) [2009] EWHC 2482 (Ch) [2010] BPIR 449

ChD, His Honour Judge John Behrens, 30 September 2009

- LIQUIDATION - Negligence - Assignment of cause of action - Insolvency Act 1986, s 212


Report on an Investigation into Complaint No 08 019 113 against The London Borough of Newham, 28 September 2009 [2010] BPIR 464

- COUNCIL TAX ARREARS - Collection through bankruptcy proceedings - Bankrupt suffering from mental illness - Council aware of health of bankrupt - Maladministration

- LOCAL GOVERNMENT OMBUDSMAN - Maladministration - Council had already remedied complaint - Purpose of publishing investigation report in the light of this remedial action - Need to clarify issue of jurisdiction


Report on an Investigation into Complaint No 07B10432 against Manchester City Council [2010] BPIR 476

JR White (Local Government Ombudsman), 22 September 2009

-BANKRUPTCY - Council tax - Maladministration


Shah v Patel and Karia [2008] EWCA Civ 979 [2010] BPIR 496

CA, Mummery, Jacob and Stanley Burnton LJJ, 15 August 2008

- COMPANY DIRECTOR - Public examination - Failure to provide information as required - Committal for contempt


Webb v Macdonald QC and Dakers Green Brett [2010] EWHC 93 (Ch) [2010] BPIR 503

ChD, Vos J, 29 January 2010

- INDIVIDUAL VOLUNTARY ARRANGEMENT - Secured creditor - Approval of proposal - Effect of approval on secured creditor's rights - Whether secured creditor remained entitled to rely upon security - Whether agreeing claim for dividend purposes amounting to waiver of security - Insolvency Act 1986, s 258(4) - Insolvency Rules 1986, rr 6.115, 11.9

- GUARANTEE - Secured creditor - Individual guaranteeing debts of company - Company in liquidation - Whether claim under guarantee limited to sum owed by company at liquidation - Insolvency Rules 1986, r 4.93.

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