Clark & Anor v Finnerty & Anor [2010] EWHC 2538 (Ch) (14 October 2010)

Clark & Anor v Finnerty & Anor [2010] EWHC 2538 (Ch) (14 October 2010)

Registrar's order for removal was not justified; existence of a triable issue and potential for different conclusions by another administrator did not constitute sufficient cause for removal; unbiased administrator's decision should be respected unless court concludes otherwise.

Citation
[2010] EWHC 2538 (Ch)
Parties
Appellants: Clark & Anr; Respondents: Finnerty & Anr
Jurisdiction
England and Wales
Judgment Date
14 October 2010
Procedural Posture
Appeal / Judgment on Appeal Against Registrar's Order Removing Administrators
Outcome
Appeal allowed; Registrar's order set aside; originating application dismissed.
Legal Topics
Removal of Administrators, Extortionate Credit Transactions, Penalty Clauses, Administration Objectives
Insolvency Company Law Removal of Administrators Extortionate Credit Transactions Penalty Clauses Administration Objectives

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Parties

Clark & Anr

Appellants

Finnerty & Anr

Respondents

Procedural Posture

Appeal / Judgment on Appeal Against Registrar's Order Removing Administrators

Legal Issues

  1. 1 Whether sufficient cause existed to remove administrators under paragraph 88 Schedule B1 Insolvency Act 1986
  2. 2 Whether failure to commence proceedings under s.244 Insolvency Act 1986 or for relief from a penalty constituted sufficient cause
  3. 3 Whether Registrar erred in law or fact in ordering removal

Ratio Decidendi

Registrar's order for removal was not justified; existence of a triable issue and potential for different conclusions by another administrator did not constitute sufficient cause for removal; unbiased administrator's decision should be respected unless court concludes otherwise.

Court Disposition

Appeal allowed; Registrar's order set aside; originating application dismissed.

Orders

  • Order of Registrar Derrett removing administrators and appointing new administrator set aside.
  • Originating application for removal of administrators dismissed.