Cage Consultants Ltd v Iqbal & Anor (Re Totalbrand Ltd and the Insolvency Act 1986)

Cage Consultants Ltd v Iqbal & Anor (Re Totalbrand Ltd and the Insolvency Act 1986)

Section 246ZD allows for the outright assignment of office-holder rights of action and their proceeds to an assignee, and such assignment is effective even if the company is dissolved; the statutory provisions must be interpreted purposively to allow the assignee to pursue the claim and receive the proceeds.

Parties
Claimant/respondent: Cage Consultants Limited; Defendant/applicant: Naveed Iqbal; Defendant/applicant: Rehana Kausar Iqbal
Jurisdiction
England and Wales
Judgment Date
02 November 2020
Procedural Posture
Insolvency Appeal / Renewed Application for Permission to Appeal
Outcome
Permission to appeal refused
Legal Topics
Assignment of Office Holder Claims, Statutory Rights of Action, Liquidation, Dissolution of Company, Distribution of Proceeds
Insolvency Law Company Law Assignment of Office Holder Claims Statutory Rights of Action Liquidation Dissolution of Company Distribution of Proceeds

Case Brief

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Parties

Cage Consultants Limited

Claimant/respondent

Naveed Iqbal

Defendant/applicant

Rehana Kausar Iqbal

Defendant/applicant

Procedural Posture

Insolvency Appeal / Renewed Application for Permission to Appeal

Legal Issues

  1. 1 Whether an assignee of office-holder claims under s. 246ZD of the Insolvency Act 1986 can pursue such claims and receive proceeds after the company has been dissolved
  2. 2 Whether the proceeds of assigned claims must be paid to the company for the benefit of creditors

Ratio Decidendi

Section 246ZD allows for the outright assignment of office-holder rights of action and their proceeds to an assignee, and such assignment is effective even if the company is dissolved; the statutory provisions must be interpreted purposively to allow the assignee to pursue the claim and receive the proceeds.

Court Disposition

Permission to appeal refused

Orders

  • Claims by Cage Consultants Limited against the Applicants to proceed