Steele, R (on the application of) v Birmingham City Council & Anor

Steele, R (on the application of) v Birmingham City Council & Anor

A liability to repay jobseeker's allowance overpayment, not determined by the Secretary of State at the date of bankruptcy, is not a contingent liability under section 382 of the Insolvency Act 1986. Therefore, it is not a bankruptcy debt and is not released upon discharge from bankruptcy.

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 From High Court to Court of Appeal
Outcome
Appeal allowed
Legal Topics
Bankruptcy Debts, Contingent Liabilities, Overpayment Recovery, Jobseeker's Allowance, Statutory Interpretation
Insolvency Law Social Security Law Bankruptcy Debts Contingent Liabilities Overpayment Recovery Jobseeker's Allowance Statutory Interpretation

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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 From High Court to Court of Appeal

Legal Issues

  1. 1 Whether a liability to repay jobseeker's allowance overpayment, 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 jobseeker's allowance overpayment, not determined by the Secretary of State at the date of bankruptcy, is not a contingent liability under section 382 of the Insolvency Act 1986. Therefore, it is not a bankruptcy debt and is not released upon discharge from bankruptcy.

Court Disposition

Appeal allowed

Orders

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