Sandhu (t/a Isher Fashions UK) v Jet Star Retail Ltd & Ors [2011] EWCA Civ 459 (19 April 2011)

Sandhu (t/a Isher Fashions UK) v Jet Star Retail Ltd & Ors [2011] EWCA Civ 459 (19 April 2011)

Jet Star retained authority to dispose of the goods under the retention of title clause until Isher Fashions took steps to withdraw it, which it did not do; therefore, Jet Star's disposal of the goods during administration was not wrongful.

Citation
[2011] EWCA Civ 459
Parties
Claimant/appellant: Bulbinder Singh Sandhu (trading as Isher Fashions UK); First Defendant/respondent: Jet Star Retail Limited (in administration); Second Defendant/respondent: Michael Healy; Third Defendant/respondent: Neil Bennett
Jurisdiction
England and Wales
Judgment Date
19 April 2011
Procedural Posture
Civil Appeal / Appeal From High Court (birmingham Mercantile Court) to Court of Appeal
Outcome
Appeal dismissed
Legal Topics
Retention of Title Clauses, Authority to Dispose of Goods, Administration of Insolvent Companies, Conversion, Floating Charges
Commercial Law Insolvency Law Retention of Title Clauses Authority to Dispose of Goods Administration of Insolvent Companies Conversion Floating Charges

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Parties

Bulbinder Singh Sandhu (trading as Isher Fashions UK)

Claimant/appellant

Jet Star Retail Limited (in administration)

First Defendant/respondent

Michael Healy

Second Defendant/respondent

Neil Bennett

Third Defendant/respondent

Procedural Posture

Civil Appeal / Appeal From High Court (birmingham Mercantile Court) to Court of Appeal

Legal Issues

  1. 1 Whether Jet Star's authority to dispose of goods subject to a retention of title clause ceased upon insolvency and administration
  2. 2 Whether Isher Fashions had a claim for conversion or for damages as an expense of administration

Ratio Decidendi

Jet Star retained authority to dispose of the goods under the retention of title clause until Isher Fashions took steps to withdraw it, which it did not do; therefore, Jet Star's disposal of the goods during administration was not wrongful.

Court Disposition

Appeal dismissed

Orders

  • Judgment for the respondents
  • No claim for conversion or damages as an expense of administration