Care People Ltd, Re [2013] EWHC 1734 (Ch) (18 March 2013)

Care People Ltd, Re [2013] EWHC 1734 (Ch) (18 March 2013)

The appointment of the administrator was premature and irregular but not a nullity, as the defect was procedural and not fundamental to the existence of the power. Rule 7.55 applies, and since there was no substantial injustice to the company, the appointment is declared valid despite the defect.

Citation
[2013] EWHC 1734 (Ch)
Parties
Applicant Administrator: Marc Brown; Company: Care People Limited (In Administration); Qualifying Floating Chargeholder: Ultimate Invoice Financing Limited
Jurisdiction
England and Wales
Judgment Date
18 March 2013
Procedural Posture
Insolvency Application / Judgment on Validity of Administrator's Appointment
Outcome
Appointment of administrator declared valid despite procedural defect.
Legal Topics
Appointment of Administrators, Qualifying Floating Charge, Procedural Irregularity, Rule 7.55 Insolvency Rules 1986
Insolvency Company Law Appointment of Administrators Qualifying Floating Charge Procedural Irregularity Rule 7.55 Insolvency Rules 1986

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Parties

Marc Brown

Applicant Administrator

Care People Limited (In Administration)

Company

Ultimate Invoice Financing Limited

Qualifying Floating Chargeholder

Procedural Posture

Insolvency 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 Financing 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 irregular but not a nullity, as the defect was procedural and not fundamental to the existence of the power. Rule 7.55 applies, and since there was no substantial injustice to the company, the appointment is declared valid despite the defect.

Court Disposition

Appointment of administrator declared valid despite procedural defect.

Orders

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