Sandhu (t/a Isher Fashions UK) v Jet Star Retail Ltd (t/a Mark One) & Ors [2010] EWHC B17 (Mercantile) (21 April 2010)

Sandhu (t/a Isher Fashions UK) v Jet Star Retail Ltd (t/a Mark One) & Ors [2010] EWHC B17 (Mercantile) (21 April 2010)

The contract expressly provided for the rights and obligations of the parties in the event of insolvency or administration, and did not terminate automatically upon administration. The Claimant did not exercise any right to terminate or demand delivery up of the stock before it was sold. The Claimant had no immediate right to possession of the stock at the relevant time, so the claim for conversion fails.

Citation
[2010] EWHC B17 (Mercantile)
Parties
Claimant: Bulbinder Singh Sandhu (trading as Isher Fashions UK); First Defendant: Jet Star Retail Limited t/a Mark One (In Administration); Second Defendant (joint Administrator): Michael Healy; Third Defendant (joint Administrator): Neil Bennett
Jurisdiction
England and Wales
Judgment Date
21 April 2010
Procedural Posture
Commercial/contract Dispute (preliminary Issue) / Judgment on Outstanding Preliminary Issue
Outcome
Claim dismissed on the outstanding preliminary issue.
Legal Topics
Retention of Title (rot) Clauses, Administration of Insolvent Companies, Conversion, Sale of Goods, Contract Interpretation
Commercial Law Insolvency Law Contract Law Retention of Title (rot) Clauses Administration of Insolvent Companies Conversion Sale of Goods Contract Interpretation

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Parties

Bulbinder Singh Sandhu (trading as Isher Fashions UK)

Claimant

Jet Star Retail Limited t/a Mark One (In Administration)

First Defendant

Michael Healy

Second Defendant (joint Administrator)

Neil Bennett

Third Defendant (joint Administrator)

Procedural Posture

Commercial/contract Dispute (preliminary Issue) / Judgment on Outstanding Preliminary Issue

Legal Issues

  1. 1 Whether the Claimant has any claim in respect of goods held in stock by the First Defendant upon entering administration but sold before the sale of the business to Internacionale Retail Limited; or held in stock at the time of administration and delivered to Internacionale Retail Limited pursuant to the sale agreement.

Ratio Decidendi

The contract expressly provided for the rights and obligations of the parties in the event of insolvency or administration, and did not terminate automatically upon administration. The Claimant did not exercise any right to terminate or demand delivery up of the stock before it was sold. The Claimant had no immediate right to possession of the stock at the relevant time, so the claim for conversion fails.

Court Disposition

Claim dismissed on the outstanding preliminary issue.

Orders

  • Question 7(c) in the preliminary issue is answered 'no' in respect of both stock sold between 19 Nov and 25 Nov 2008 and stock sold to Internacionale.