Apex Frozen Foods Ltd v Ali & Ors

Apex Frozen Foods Ltd v Ali & Ors

Mr Smailes, as provisional liquidator, is liable under his cross-undertaking to compensate Foods (London) Ltd for costs occasioned by the freezing order, to be assessed on the standard basis, but the circumstances do not justify a third-party costs order under section 51 Supreme Court Act 1981 against him personally.

Parties
Claimant: Apex Frozen Foods Ltd (in Liquidation); Defendant: Abdul Ali; Defendant: Foods (London) Ltd; Defendant: Robert Derek Smailes
Jurisdiction
England and Wales
Judgment Date
09 March 2007
Procedural Posture
Civil / Costs Application Following Discharge of Freezing Order
Outcome
Application allowed in part
Legal Topics
Freezing Orders, Cross Undertakings, Third Party Costs Orders, Liquidator Liability
Civil Procedure Insolvency Freezing Orders Cross Undertakings Third Party Costs Orders Liquidator Liability

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Parties

Apex Frozen Foods Ltd (in Liquidation)

Claimant

Abdul Ali

Defendant

Foods (London) Ltd

Defendant

Robert Derek Smailes

Defendant

Procedural Posture

Civil / Costs Application Following Discharge of Freezing Order

Legal Issues

  1. 1 Whether 'loss' in a cross-undertaking includes costs incurred by the defendant in relation to a freezing order and its discharge
  2. 2 Whether a third-party costs order should be made against a provisional liquidator under section 51 Supreme Court Act 1981

Ratio Decidendi

Mr Smailes, as provisional liquidator, is liable under his cross-undertaking to compensate Foods (London) Ltd for costs occasioned by the freezing order, to be assessed on the standard basis, but the circumstances do not justify a third-party costs order under section 51 Supreme Court Act 1981 against him personally.

Court Disposition

Application allowed in part

Orders

  • Mr Smailes is liable under his undertaking to pay Foods (London) Ltd's costs of the application, to be assessed on the standard basis if not agreed.
  • No order is made against Mr Smailes under section 51 Supreme Court Act 1981.