Maud v Aabar Block S.a.r.L Edgeworth Capital (Luxembourg) S.a.r.L.

Maud v Aabar Block S.a.r.L Edgeworth Capital (Luxembourg) S.a.r.L.

The Registrar's decision to make a bankruptcy order was flawed because he failed to properly consider the interests and views of the class of creditors and was diverted by an incorrect 'shifting burden' analysis based on Irish authorities. The Registrar also failed to address the Petitioning Creditors' ulterior objectives, which are relevant when the petition is opposed by other creditors. The appeal is allowed and the bankruptcy order set aside; the matter is remitted for further consideration with proper submissions and evidence from all relevant creditors.

Parties
Appellant/debtor: Glenn Maud; Respondent/petitioner: Aabar Block S.a.r.l; Respondent/petitioner: Edgeworth Capital (Luxembourg) S.a.r.l.
Jurisdiction
England and Wales
Judgment Date
08 September 2016
Procedural Posture
Bankruptcy Appeal / Appeal Against Bankruptcy Order; Permission to Appeal and Appeal Hearing
Outcome
Appeal allowed; bankruptcy order set aside; petition remitted for further hearing.
Legal Topics
Abuse of Process, Class Remedy, Adjournment of Bankruptcy Petition, Ulterior Motive in Insolvency Proceedings, Discretion of Court in Bankruptcy, Creditors' Interests
Insolvency Bankruptcy Company Law Abuse of Process Class Remedy Adjournment of Bankruptcy Petition Ulterior Motive in Insolvency Proceedings Discretion of Court in Bankruptcy +1 more

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Parties

Glenn Maud

Appellant/debtor

Aabar Block S.a.r.l

Respondent/petitioner

Edgeworth Capital (Luxembourg) S.a.r.l.

Respondent/petitioner

Procedural Posture

Bankruptcy Appeal / Appeal Against Bankruptcy Order; Permission to Appeal and Appeal Hearing

Legal Issues

  1. 1 Whether the bankruptcy order against Mr. Maud should stand given the Petitioning Creditors' ulterior motives
  2. 2 Whether the Registrar applied the correct legal principles in making the bankruptcy order
  3. 3 The relevance of ulterior motives or objectives of petitioning creditors in bankruptcy proceedings

Ratio Decidendi

The Registrar's decision to make a bankruptcy order was flawed because he failed to properly consider the interests and views of the class of creditors and was diverted by an incorrect 'shifting burden' analysis based on Irish authorities. The Registrar also failed to address the Petitioning Creditors' ulterior objectives, which are relevant when the petition is opposed by other creditors. The appeal is allowed and the bankruptcy order set aside; the matter is remitted for further consideration with proper submissions and evidence from all relevant creditors.

Court Disposition

Appeal allowed; bankruptcy order set aside; petition remitted for further hearing.

Orders

  • Permission to appeal granted.
  • Appeal allowed; bankruptcy order set aside.