Arnstein v Coplexia Collaborative Llp & Anor [2023] EWHC 714 (Ch) (31 March 2023)

Arnstein v Coplexia Collaborative Llp & Anor [2023] EWHC 714 (Ch) (31 March 2023)

The court found that the LLP's financial difficulties and inability to pay its debts predated the coronavirus pandemic and were not caused by it. The LLP failed to demonstrate a prima facie case that its financial position worsened due to coronavirus. The Petitioner had reasonable grounds for his belief under Schedule 10. The court also found no sufficient grounds for adjournment. Accordingly, the court exercised its discretion to order Mr Khodaparast, as the real party behind the LLP, to pay the Petitioner's costs occasioned by the coronavirus test and related hearings.

Citation
[2023] EWHC 714 (Ch)
Parties
Petitioner: Peter Mark Arnstein; First Respondent: Coplexia Collaborative LLP; Second Respondent: Amir Khodaparast
Jurisdiction
England and Wales
Judgment Date
31 March 2023
Procedural Posture
Insolvency (winding Up Petition) / Application for Non Party Costs Order Following Winding Up Order
Outcome
Application granted
Legal Topics
Winding Up Petitions, Non Party Costs Orders, COVID 19 Financial Effect Test, Corporate Insolvency and Governance Act 2020, Civil Procedure Rules
Insolvency Law Civil Procedure Winding Up Petitions Non Party Costs Orders COVID 19 Financial Effect Test Corporate Insolvency and Governance Act 2020 Civil Procedure Rules

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Parties

Peter Mark Arnstein

Petitioner

Coplexia Collaborative LLP

First Respondent

Amir Khodaparast

Second Respondent

Procedural Posture

Insolvency (winding Up Petition) / Application for Non Party Costs Order Following Winding Up Order

Legal Issues

  1. 1 Whether the Second Respondent, Mr Khodaparast, should be ordered to pay the Petitioner's costs occasioned by the coronavirus test under Schedule 10 to the Corporate Insolvency and Governance Act 2020, including costs of the preliminary hearing.
  2. 2 Whether the LLP's financial position worsened due to coronavirus or for other reasons.
  3. 3 Whether an adjournment should be granted on health or procedural grounds.

Ratio Decidendi

The court found that the LLP's financial difficulties and inability to pay its debts predated the coronavirus pandemic and were not caused by it. The LLP failed to demonstrate a prima facie case that its financial position worsened due to coronavirus. The Petitioner had reasonable grounds for his belief under Schedule 10. The court also found no sufficient grounds for adjournment. Accordingly, the court exercised its discretion to order Mr Khodaparast, as the real party behind the LLP, to pay the Petitioner's costs occasioned by the coronavirus test and related hearings.

Court Disposition

Application granted

Orders

  • Mr Khodaparast is ordered to pay the Petitioner's costs of and occasioned by consideration of the coronavirus test under Schedule 10 to the Corporate Insolvency and Governance Act 2020, including the costs of the preliminary hearing.