Davis & Anor v Price & Anor [2013] EWHC 323 (Ch) (21 February 2013)

Davis & Anor v Price & Anor [2013] EWHC 323 (Ch) (21 February 2013)

The liability for costs was a debt subject to the terms of the IVAs approved at the further meetings because the Insolvency Rules require that all creditors with notice of the meeting and with debts owed at the date of the meeting are entitled to vote and are bound by the IVA, regardless of whether the approval of the original IVA was suspended or revoked.

Citation
[2013] EWHC 323 (Ch)
Parties
Claimant/respondent: Stuart Davis; Claimant/respondent: Karen Davis; Defendant/appellant: Richard Price; Defendant/appellant: Dilys Price
Jurisdiction
England and Wales
Judgment Date
21 February 2013
Procedural Posture
Appeal / Judgment on Appeal From County Court Order Setting Aside Statutory Demands
Outcome
Appeal dismissed
Legal Topics
Individual Voluntary Arrangements (ivas), Statutory Demands, Costs Orders, Voting Rights of Creditors, Interpretation of Insolvency Act 1986 and Insolvency Rules 1986
Insolvency Civil Procedure Individual Voluntary Arrangements (ivas) Statutory Demands Costs Orders Voting Rights of Creditors Interpretation of Insolvency Act 1986 and Insolvency Rules 1986

Case Brief

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Parties

Stuart Davis

Claimant/respondent

Karen Davis

Claimant/respondent

Richard Price

Defendant/appellant

Dilys Price

Defendant/appellant

Procedural Posture

Appeal / Judgment on Appeal From County Court Order Setting Aside Statutory Demands

Legal Issues

  1. 1 Whether a costs order made after the date of an interim order but before a further creditors' meeting is subject to the terms of an IVA approved at that further meeting
  2. 2 Whether creditors entitled to vote at a further meeting following suspension (not revocation) of an IVA approval are limited to those entitled at the original meeting

Ratio Decidendi

The liability for costs was a debt subject to the terms of the IVAs approved at the further meetings because the Insolvency Rules require that all creditors with notice of the meeting and with debts owed at the date of the meeting are entitled to vote and are bound by the IVA, regardless of whether the approval of the original IVA was suspended or revoked.

Court Disposition

Appeal dismissed

Orders

  • Statutory demands set aside
  • Appellants to pay respondents' costs assessed at £10,000