Steele, R (on the application of) v Birmingham City Council & Anor [2005] EWCA Civ 1824 (16 December 2005)

Steele, R (on the application of) v Birmingham City Council & Anor [2005] EWCA Civ 1824 (16 December 2005)

A liability to repay overpaid jobseeker's allowance under section 71(1) of the Social Security Administration Act 1992 is not a contingent liability for the purposes of section 382 of the Insolvency Act 1986 unless a determination has been made before the date of bankruptcy. Mere risk of a determination is insufficient; there must be an existing legal obligation at the relevant date.

Citation
[2005] EWCA Civ 1824
Parties
Claimant/respondent: David William Steele; Defendant/appellant: Birmingham City Council; Defendant/appellant: The Secretary of State for Work and Pensions
Jurisdiction
England and Wales
Judgment Date
16 December 2005
Procedural Posture
Judicial Review Appeal / Court of Appeal (civil Division) Appeal From High Court Administrative Court
Outcome
Appeal allowed
Legal Topics
Bankruptcy Debts, Contingent Liabilities, Overpayment Recovery, Jobseeker's Allowance, Discharge From Bankruptcy
Insolvency Law Social Security Law Administrative Law Bankruptcy Debts Contingent Liabilities Overpayment Recovery Jobseeker's Allowance Discharge From Bankruptcy

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Parties

David William Steele

Claimant/respondent

Birmingham City Council

Defendant/appellant

The Secretary of State for Work and Pensions

Defendant/appellant

Procedural Posture

Judicial Review Appeal / Court of Appeal (civil Division) Appeal From High Court Administrative Court

Legal Issues

  1. 1 Whether a liability to repay overpaid jobseeker's allowance, determined after bankruptcy, is a 'contingent liability' and thus a 'bankruptcy debt' under section 382 of the Insolvency Act 1986
  2. 2 Whether discharge from bankruptcy releases the claimant from liability to repay the overpayment

Ratio Decidendi

A liability to repay overpaid jobseeker's allowance under section 71(1) of the Social Security Administration Act 1992 is not a contingent liability for the purposes of section 382 of the Insolvency Act 1986 unless a determination has been made before the date of bankruptcy. Mere risk of a determination is insufficient; there must be an existing legal obligation at the relevant date.

Court Disposition

Appeal allowed

Orders

  • Judge's order quashed
  • Secretary of State's decision of 19th November 2003 reinstated