Care People Ltd, Re

Care People Ltd, Re

The appointment of the administrator was premature and procedurally irregular, but not a nullity, as the company could not have met the demand in any event. There was no substantial injustice to the company, and Rule 7.55 applies to prevent invalidation of the appointment.

Parties
Company: Care People Limited; Administrator: Mr. Fender (Sanderlings LLP); Qualifying Floating Chargeholder: Ultimate Invoice Finance Limited
Jurisdiction
England and Wales
Judgment Date
18 March 2013
Procedural Posture
Insolvency/administration Application / Judgment on Validity of Administrator's Appointment
Outcome
Appointment of administrator declared valid despite procedural defect.
Legal Topics
Appointment of Administrator, Qualifying Floating Charge, Enforceability of Charge, Procedural Defects in Insolvency Proceedings
Insolvency Law Company Law Appointment of Administrator Qualifying Floating Charge Enforceability of Charge Procedural Defects in Insolvency Proceedings

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Parties

Care People Limited

Company

Mr. Fender (Sanderlings LLP)

Administrator

Ultimate Invoice Finance Limited

Qualifying Floating Chargeholder

Procedural Posture

Insolvency/administration Application / Judgment on Validity of Administrator's Appointment

Legal Issues

  1. 1 Whether the appointment of Mr. Fender as administrator was validly made by Ultimate Invoice Finance Limited under a qualifying floating charge
  2. 2 Whether procedural defects in the appointment process render the appointment a nullity or an irregularity
  3. 3 Whether Rule 7.55 of the Insolvency Rules 1986 applies to validate the appointment despite defects

Ratio Decidendi

The appointment of the administrator was premature and procedurally irregular, but not a nullity, as the company could not have met the demand in any event. There was no substantial injustice to the company, and Rule 7.55 applies to prevent invalidation of the appointment.

Court Disposition

Appointment of administrator declared valid despite procedural defect.

Orders

  • Appointment of Mr. Fender as administrator is valid and defect waived.