Appleyard v Wewelwala

Appleyard v Wewelwala

The trustee is entitled to recover his reasonable expenses incurred prior to notification of the setting aside of the bankruptcy order, by way of a charge over the property of the bankrupt which re-vested in her, as the court has inherent jurisdiction to make such an order and the trustee acted properly and innocently.

Parties
Applicant/trustee in Bankruptcy: Andrew Appleyard; Respondent/bankrupt: Chithra Melani Wewelwala
Jurisdiction
England and Wales
Judgment Date
23 November 2012
Procedural Posture
Bankruptcy Application for Directions / Judgment on Trustee's Application for Directions After Bankruptcy Order Set Aside on Appeal
Outcome
Application allowed in part
Legal Topics
Trustee's Expenses, Setting Aside Bankruptcy Order, Inherent Jurisdiction, Annulment of Bankruptcy, Charge Over Property
Insolvency Bankruptcy Trustee's Expenses Setting Aside Bankruptcy Order Inherent Jurisdiction Annulment of Bankruptcy Charge Over Property

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Parties

Andrew Appleyard

Applicant/trustee in Bankruptcy

Chithra Melani Wewelwala

Respondent/bankrupt

Procedural Posture

Bankruptcy Application for Directions / Judgment on Trustee's Application for Directions After Bankruptcy Order Set Aside on Appeal

Legal Issues

  1. 1 Whether the court has jurisdiction to order payment of trustee's expenses after bankruptcy order set aside on appeal
  2. 2 Whether trustee's expenses should be paid and by whom or out of what fund
  3. 3 Whether a charge should be imposed over the bankrupt's property for trustee's expenses

Ratio Decidendi

The trustee is entitled to recover his reasonable expenses incurred prior to notification of the setting aside of the bankruptcy order, by way of a charge over the property of the bankrupt which re-vested in her, as the court has inherent jurisdiction to make such an order and the trustee acted properly and innocently.

Court Disposition

Application allowed in part

Orders

  • Trustee released from office forthwith
  • Charge imposed over all property of the bankrupt re-vested in her as a result of the setting aside of the bankruptcy order, as security for the trustee's reasonable expenses incurred up to notification in January 2012