Jackson & Anor v Baker Tilly & Anor [2014] EWHC 1134 (Ch) (10 April 2014)

Jackson & Anor v Baker Tilly & Anor [2014] EWHC 1134 (Ch) (10 April 2014)

The liquidators established a reasonable requirement for the production of audit files and related documents from the respondents to investigate the affairs of Alocasia Limited. The court, applying the balancing exercise mandated by authority, found that the applicants' narrowed request was justified and not oppressive, and that the statutory powers under sections 235 and 236 of the Insolvency Act 1986 entitled the liquidators to the relief sought.

Citation
[2014] EWHC 1134 (Ch)
Parties
Applicant: Bryan Jackson; Applicant: James Douglas Ernle Money; Respondent: Baker Tilly; Respondent: Baker Tilly UK Audit LLP
Jurisdiction
England and Wales
Judgment Date
10 April 2014
Procedural Posture
Insolvency Application / Judgment on Application for Production of Documents Under Sections 235 and 236 of the Insolvency Act 1986
Outcome
Application granted in part
Legal Topics
Liquidator's Powers, Production of Documents, Examination of Third Parties, Audit Files, Tax Affairs, Section 235 Insolvency Act 1986, Section 236 Insolvency Act 1986
Insolvency Company Law Liquidator's Powers Production of Documents Examination of Third Parties Audit Files Tax Affairs Section 235 Insolvency Act 1986 +1 more

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Parties

Bryan Jackson

Applicant

James Douglas Ernle Money

Applicant

Baker Tilly

Respondent

Baker Tilly UK Audit LLP

Respondent

Procedural Posture

Insolvency Application / Judgment on Application for Production of Documents Under Sections 235 and 236 of the Insolvency Act 1986

Legal Issues

  1. 1 Whether the liquidators are entitled to production of documents from the company's former auditors under sections 235 and 236 of the Insolvency Act 1986
  2. 2 Whether the scope of documents sought is reasonable and not oppressive
  3. 3 Whether the balancing exercise between the liquidators' need for information and the burden on the auditors justifies the order

Ratio Decidendi

The liquidators established a reasonable requirement for the production of audit files and related documents from the respondents to investigate the affairs of Alocasia Limited. The court, applying the balancing exercise mandated by authority, found that the applicants' narrowed request was justified and not oppressive, and that the statutory powers under sections 235 and 236 of the Insolvency Act 1986 entitled the liquidators to the relief sought.

Court Disposition

Application granted in part

Orders

  • Respondents to produce audit files and related documents concerning Alocasia Limited as specified in the draft order.
  • Redaction permitted for documents relating to other group companies (Minton Group) as appropriate.