Hotel Company 42 the Calls Ltd, Re [2013] EWHC 3925 (Ch) (18 September 2013)

Hotel Company 42 the Calls Ltd, Re [2013] EWHC 3925 (Ch) (18 September 2013)

The administration purpose has been achieved and there is no practical reason for the administrators to remain in office. The administrators' statutory charge is sufficient to protect their entitlement to remuneration and expenses, and there is no justification for authorising a further charge. The administration should be terminated, with the administrators' discharge postponed pending resolution of unfair harm and misfeasance proceedings.

Citation
[2013] EWHC 3925 (Ch)
Parties
Applicant Administrator: John Whitfield; Applicant Administrator: Matthew Ingram; Respondent Creditor/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 Related Reliefs
Outcome
Administration terminated; relief for further charge refused; administrators' discharge postponed.
Legal Topics
Administrator's Remuneration, Statutory Charge, Termination of Administration, Unfair Harm and Misfeasance, Land Registry Protection
Insolvency Company Law Administrator's Remuneration Statutory Charge Termination of Administration Unfair Harm and Misfeasance Land Registry Protection

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Parties

John Whitfield

Applicant Administrator

Matthew Ingram

Applicant Administrator

Mohamed Bin Issa Al Jaber

Respondent Creditor/shareholder

JJW Limited

Respondent Shareholder

Procedural Posture

Insolvency/administration Application / Judgment on Applications to Terminate Administration and Related Reliefs

Legal Issues

  1. 1 Whether administration of Hotel Company 42 The Calls Limited should be terminated
  2. 2 Whether administrators are entitled 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 purpose has been achieved and there is no practical reason for the administrators to remain in office. The administrators' statutory charge is sufficient to protect their entitlement to remuneration and expenses, and there is no justification for authorising a further charge. The administration should be terminated, with the administrators' discharge postponed pending resolution of unfair harm and misfeasance proceedings.

Court Disposition

Administration terminated; relief for further charge refused; administrators' discharge 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 further charge over company assets.