Re Euromaster Ltd [2012] EWHC 2356 (Ch) (10 August 2012)

Re Euromaster Ltd [2012] EWHC 2356 (Ch) (10 August 2012)

Appointment of administrators outside the 10-day window under paragraph 28(2) of Schedule B1 is an irregularity, not a nullity, and is curable under IR 7.55 unless substantial injustice is shown. The administrators' appointment stands, and their acts are not invalidated by the procedural defect.

Citation
[2012] EWHC 2356 (Ch)
Parties
Company: Euromaster Ltd; Administrator: Mr Dante; Administrator: Mr Davis; Qualifying Floating Charge Holder: Lloyds TSB Bank Plc; Counsel for Applicants: Daniel Warents
Jurisdiction
England and Wales
Judgment Date
10 August 2012
Procedural Posture
Insolvency Application / Judgment on Validity of Administrators' Appointment
Outcome
Appointment of administrators held valid despite procedural irregularity; not a nullity.
Legal Topics
Administration Appointment, Procedural Irregularity, Schedule B1 Insolvency Act 1986, Validity of Appointment, IR 7.55
Insolvency Company Law Administration Appointment Procedural Irregularity Schedule B1 Insolvency Act 1986 Validity of Appointment IR 7.55

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Parties

Euromaster Ltd

Company

Mr Dante

Administrator

Mr Davis

Administrator

Lloyds TSB Bank Plc

Qualifying Floating Charge Holder

Daniel Warents

Counsel for Applicants

Procedural Posture

Insolvency Application / Judgment on Validity of Administrators' Appointment

Legal Issues

  1. 1 Whether appointment of administrators outside the 10-day window under paragraph 28(2) of Schedule B1 is a nullity or an irregularity
  2. 2 Whether the irregularity can be cured under IR 7.55
  3. 3 Consequences for acts done by administrators if appointment is irregular

Ratio Decidendi

Appointment of administrators outside the 10-day window under paragraph 28(2) of Schedule B1 is an irregularity, not a nullity, and is curable under IR 7.55 unless substantial injustice is shown. The administrators' appointment stands, and their acts are not invalidated by the procedural defect.

Court Disposition

Appointment of administrators held valid despite procedural irregularity; not a nullity.

Orders

  • Declaration that Mr Dante and Mr Davis are in office as administrators of Euromaster and will continue to be so, subject to any application under IR 7.55.
  • Declaration that no prior act of the administrators in the administration is invalidated by reason only of the defect in their appointment.