Randhawa & Anor v Turpin & Anor

Randhawa & Anor v Turpin & Anor

The appointment of the Joint Administrators was invalid because the sole director could not validly appoint administrators without a quorum as required by the articles, and the Duomatic principle could not apply where one registered shareholder was a dissolved company incapable of consenting.

Parties
Applicant/appellant: Gursharan Randhawa; Applicant/appellant: Sukhinder Randhawa; Respondent: Andrew Turpin; Respondent: Matthew Hardy
Jurisdiction
England and Wales
Judgment Date
01 August 2017
Procedural Posture
Civil Appeal / Appeal From High Court Judgment
Outcome
Appeal allowed
Legal Topics
Appointment of Administrators, Duomatic Principle, Quorum Requirements, Abuse of Process, Acquiescence, Estoppel

Case Brief

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Parties

Gursharan Randhawa

Applicant/appellant

Sukhinder Randhawa

Applicant/appellant

Andrew Turpin

Respondent

Matthew Hardy

Respondent

Procedural Posture

Civil Appeal / Appeal From High Court Judgment

  1. 1 Whether the sole director of a company whose articles required two directors for a quorum could validly appoint administrators under paragraph 22 of Schedule B1 to the Insolvency Act 1986
  2. 2 Whether the Duomatic principle could be applied where one shareholder was a dissolved company
  3. 3 Whether acquiescence or abuse of process estopped the applicants from challenging the appointment

Ratio Decidendi

The appointment of the Joint Administrators was invalid because the sole director could not validly appoint administrators without a quorum as required by the articles, and the Duomatic principle could not apply where one registered shareholder was a dissolved company incapable of consenting.

Court Disposition

Appeal allowed

Orders

  • Declaration that the appointment of the Joint Administrators was invalid