Cage Consultants Ltd v Iqbal & Anor (Re Totalbrand Ltd and the Insolvency Act 1986) [2020] EWHC 2917 (Ch) (02 November 2020)

Cage Consultants Ltd v Iqbal & Anor (Re Totalbrand Ltd and the Insolvency Act 1986) [2020] EWHC 2917 (Ch) (02 November 2020)

Section 246ZD of the Insolvency Act 1986 permits outright assignment of office-holder claims and their proceeds to an assignee, including after company dissolution; purposive interpretation allows assignee to pursue claims and receive proceeds, and does not require restoration of the company or payment into company assets.

Citation
[2020] EWHC 2917 (Ch)
Parties
Claimant/respondent: Cage Consultants Limited; Defendant/applicant: Naveed Iqbal; Defendant/applicant: Rehana Kausar Iqbal
Jurisdiction
England and Wales
Judgment Date
02 November 2020
Procedural Posture
Appeal / Renewed Application for Permission to Appeal
Outcome
permission to appeal refused
Legal Topics
Assignment of Office Holder Claims, Statutory Rights of Action, Dissolution of Company, Distribution of Proceeds, Creditor Benefit
Insolvency Law Company Law Assignment of Office Holder Claims Statutory Rights of Action Dissolution of Company Distribution of Proceeds Creditor Benefit

Case Brief

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Parties

Cage Consultants Limited

Claimant/respondent

Naveed Iqbal

Defendant/applicant

Rehana Kausar Iqbal

Defendant/applicant

Procedural Posture

Appeal / Renewed Application for Permission to Appeal

Legal Issues

  1. 1 Whether an assignee of office-holder claims under s.246ZD Insolvency Act 1986 can pursue claims and retain proceeds after company dissolution
  2. 2 Whether court orders under ss.213, 238, 239 Insolvency Act 1986 must direct proceeds to company assets
  3. 3 Whether assignment under s.246ZD bypasses creditor benefit

Ratio Decidendi

Section 246ZD of the Insolvency Act 1986 permits outright assignment of office-holder claims and their proceeds to an assignee, including after company dissolution; purposive interpretation allows assignee to pursue claims and receive proceeds, and does not require restoration of the company or payment into company assets.

Court Disposition

permission to appeal refused

Orders

  • claims by Cage Consultants Limited against Naveed Iqbal and Rehana Kausar Iqbal to proceed