Jackson & Ors v Thakrar & Ors [2007] EWHC 2173_2 (TCC) (10 October 2007)

Jackson & Ors v Thakrar & Ors [2007] EWHC 2173_2 (TCC) (10 October 2007)

The court found that the appointment of administrators to Glen International Limited was orchestrated by Subhash Kanji Thakrar for the improper purpose of derailing the litigation and avoiding adverse findings and enforcement, that the directors did not act independently, and that statutory prerequisites and procedural requirements were not properly complied with. Accordingly, the administration was set aside under paragraph 81 of Schedule B1 to the Insolvency Act 1986.

Citation
[2007] EWHC 2173_2 (TCC)
Parties
Claimant/applicant: Shirley Jackson (Trustee in Bankruptcy of Subhash Kanji Thakrar); Claimant/applicant: Suburban Property Company Limited, Kenneth Hughes-Narborough, Rosemary Campbell; Claimant/applicant: Kenneth Hughes-Narborough, Rosemary Campbell, Michael Hughes-Narborough (trustees of William Hughes-Narborough's will trusts and of his estate); Claimant/applicant: Barbara Harris (claiming personally and as sole surviving executrix of Neil Hughes-Narborough's will); Claimant/applicant: Ramila Suresh Bhojani; Claimant/applicant: Vijaya Radia; Defendant/respondent: Subhash Kanji Thakrar (a bankrupt); Defendant/respondent: Mukesh Kanji Thakrar; Defendant/respondent: Vijay Kanji Thakrar; Defendant/respondent: Kishan Kanji Thakrar; Defendant/respondent: Sheela Kanji Thakrar; Defendant/respondent: Naina Unalkat; Defendant/respondent: Shantaben Kanji Thakrar; Defendant/respondent: Glen International Limited; Defendant/respondent: Teso International Group Limited; Defendant/respondent: SK Thakrar and Co Limited; Defendant/respondent: Simply Lettings and Management Limited; Defendant/respondent: Mahindra Harjivan; Defendant/respondent: Selwyn Michael Langley, Justin Lee Bennett (Receivers appointed by Glen International Limited); Defendant/respondent: Barry Shelton, Mahindra Harjivan, Avni Bhatt (Directors of Glen International Limited)
Jurisdiction
England and Wales
Judgment Date
10 October 2007
Procedural Posture
Composite/consolidated Civil Action (technology and Construction Court) / Post Trial, Judgment on Applications Under Paragraph 81 of Schedule B1 to the Insolvency Act 1986
Outcome
Administration of Glen International Limited set aside; appointment of administrators declared invalid due to improper motive and procedural non-compliance.
Legal Topics
Administration of Companies, Improper Motive in Appointment of Administrators, Validity of Out of Court Administration, Directors' Duties, Fraud and Dishonesty, Receivership, Costs
Insolvency Company Law Civil Procedure Administration of Companies Improper Motive in Appointment of Administrators Validity of Out of Court Administration Directors' Duties Fraud and Dishonesty +2 more

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Parties

Shirley Jackson (Trustee in Bankruptcy of Subhash Kanji Thakrar)

Claimant/applicant

Suburban Property Company Limited, Kenneth Hughes-Narborough, Rosemary Campbell

Claimant/applicant

Kenneth Hughes-Narborough, Rosemary Campbell, Michael Hughes-Narborough (trustees of William Hughes-Narborough's will trusts and of his estate)

Claimant/applicant

Barbara Harris (claiming personally and as sole surviving executrix of Neil Hughes-Narborough's will)

Claimant/applicant

Ramila Suresh Bhojani

Claimant/applicant

Vijaya Radia

Claimant/applicant

Subhash Kanji Thakrar (a bankrupt)

Defendant/respondent

Mukesh Kanji Thakrar

Defendant/respondent

Vijay Kanji Thakrar

Defendant/respondent

Kishan Kanji Thakrar

Defendant/respondent

Sheela Kanji Thakrar

Defendant/respondent

Naina Unalkat

Defendant/respondent

Shantaben Kanji Thakrar

Defendant/respondent

Glen International Limited

Defendant/respondent

Teso International Group Limited

Defendant/respondent

SK Thakrar and Co Limited

Defendant/respondent

Simply Lettings and Management Limited

Defendant/respondent

Mahindra Harjivan

Defendant/respondent

Selwyn Michael Langley, Justin Lee Bennett (Receivers appointed by Glen International Limited)

Defendant/respondent

Barry Shelton, Mahindra Harjivan, Avni Bhatt (Directors of Glen International Limited)

Defendant/respondent

Procedural Posture

Composite/consolidated Civil Action (technology and Construction Court) / Post Trial, Judgment on Applications Under Paragraph 81 of Schedule B1 to the Insolvency Act 1986

Legal Issues

  1. 1 Whether the appointment of administrators to Glen International Limited was valid under Schedule B1 to the Insolvency Act 1986
  2. 2 Whether the directors acted with improper motive in appointing administrators
  3. 3 Whether statutory prerequisites for administration were met

Ratio Decidendi

The court found that the appointment of administrators to Glen International Limited was orchestrated by Subhash Kanji Thakrar for the improper purpose of derailing the litigation and avoiding adverse findings and enforcement, that the directors did not act independently, and that statutory prerequisites and procedural requirements were not properly complied with. Accordingly, the administration was set aside under paragraph 81 of Schedule B1 to the Insolvency Act 1986.

Court Disposition

Administration of Glen International Limited set aside; appointment of administrators declared invalid due to improper motive and procedural non-compliance.

Orders

  • Declaration that the administration of Glen International Limited is invalid and ceases to have effect from the date of the order.
  • Costs and further directions to be determined in subsequent hearings.