Hickling v Doshi Financial Services Ltd [2000] EWCA Civ 381 (5 October 2000)

Hickling v Doshi Financial Services Ltd [2000] EWCA Civ 381 (5 October 2000)

Permission to appeal is granted only on the interest point, as there is no reasonable prospect of success on the substantive points regarding voidable preferences, valuation, or benefit. Innocence or subsequent transfer of assets is irrelevant to liability under sections 239 and 127. The learned judge was entitled to value assets at transaction value and to order repayment from recipients. The only arguable point is whether the learned judge should have disturbed the district judge's order on interest when the liquidator did not appeal against the order as to DFS.

Citation
[2000] EWCA Civ 381
Parties
Appellant/respondent: Neil Francis Hickling; Respondent/applicant: Doshi Financial Services Limited; Respondent/applicant: Revti Vadilal Karshanji Doshi
Jurisdiction
England and Wales
Judgment Date
05 October 2000
Procedural Posture
Civil Appeal / Permission to Appeal Against Chancery Division (companies Court) Order
Outcome
Permission to appeal granted on interest point only; application otherwise dismissed.
Legal Topics
Voidable Preferences, Transactions at Undervalue, Section 127 Insolvency Act, Court Discretion, Interest on Judgment Debts
Insolvency Company Law Voidable Preferences Transactions at Undervalue Section 127 Insolvency Act Court Discretion Interest on Judgment Debts

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Parties

Neil Francis Hickling

Appellant/respondent

Doshi Financial Services Limited

Respondent/applicant

Revti Vadilal Karshanji Doshi

Respondent/applicant

Procedural Posture

Civil Appeal / Permission to Appeal Against Chancery Division (companies Court) Order

Legal Issues

  1. 1 Whether permission to appeal should be granted against orders for repayment of voidable preferences and payments under section 127 of the Insolvency Act 1986
  2. 2 Whether the court should exercise discretion to make no order against recipients of voidable preferences
  3. 3 Appropriate valuation of assets transferred in reduction of debt

Ratio Decidendi

Permission to appeal is granted only on the interest point, as there is no reasonable prospect of success on the substantive points regarding voidable preferences, valuation, or benefit. Innocence or subsequent transfer of assets is irrelevant to liability under sections 239 and 127. The learned judge was entitled to value assets at transaction value and to order repayment from recipients. The only arguable point is whether the learned judge should have disturbed the district judge's order on interest when the liquidator did not appeal against the order as to DFS.

Court Disposition

Permission to appeal granted on interest point only; application otherwise dismissed.

Orders

  • Permission to appeal limited to interest point.
  • Liquidator awarded 90% of costs, summarily assessed at £2,500, payable within 14 days.