Hotel Company 42 the Calls Ltd, Re

Hotel Company 42 the Calls Ltd, Re

The administration should be terminated as its purpose has been achieved and the statutory charge under paragraph 99 of Schedule B1 sufficiently protects the administrators' entitlement to remuneration and expenses. There is no justification for authorising a further charge, and any dispute over remuneration can be resolved in pending proceedings. Discharge of administrators is postponed until resolution of unfair harm and misfeasance claims.

Parties
Applicant Administrator: John Whitfield; Applicant Administrator: Matthew Ingram; Respondent Creditor and Shareholder: Mohamed Bin Issa Al Jaber; Respondent Shareholder: JJW Limited
Jurisdiction
England and Wales
Judgment Date
18 September 2013
Procedural Posture
Insolvency/administration Application / Judgment on Applications to Terminate Administration and for Administrators' Remuneration Security
Outcome
Administration terminated; application for authorisation to grant further charge refused; discharge of administrators postponed.
Legal Topics
Administration Termination, Administrators' Remuneration, Statutory Charge, Land Registry Protection, Unfair Harm and Misfeasance
Insolvency Company Law Administration Termination Administrators' Remuneration Statutory Charge Land Registry Protection Unfair Harm and Misfeasance

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Parties

John Whitfield

Applicant Administrator

Matthew Ingram

Applicant Administrator

Mohamed Bin Issa Al Jaber

Respondent Creditor and Shareholder

JJW Limited

Respondent Shareholder

Procedural Posture

Insolvency/administration Application / Judgment on Applications to Terminate Administration and for Administrators' Remuneration Security

Legal Issues

  1. 1 Whether administration of Hotel Company 42 The Calls Limited should be terminated
  2. 2 Whether administrators should be authorised to grant themselves a charge over company assets for remuneration and expenses
  3. 3 How administrators' statutory charge can be protected

Ratio Decidendi

The administration should be terminated as its purpose has been achieved and the statutory charge under paragraph 99 of Schedule B1 sufficiently protects the administrators' entitlement to remuneration and expenses. There is no justification for authorising a further charge, and any dispute over remuneration can be resolved in pending proceedings. Discharge of administrators is postponed until resolution of unfair harm and misfeasance claims.

Court Disposition

Administration terminated; application for authorisation to grant further charge refused; discharge of administrators postponed.

Orders

  • Administration of Hotel Company 42 The Calls Limited terminated with effect from 5pm on 20th September 2013.
  • Administrators not authorised to grant themselves a charge over company assets for remuneration and expenses.