BWT Aktiengesellschaft v Force India Formula One Team Ltd & Anor

BWT Aktiengesellschaft v Force India Formula One Team Ltd & Anor

The Deed of Variation did not displace the original contractual regime under clause 18.2 of the C&RA, which expressly provided that payments made prior to termination for convenience were to be retained by Force India with no pro rata reimbursement. The conditions for the variation to take effect were not fulfilled, and there was no contractual or general law debt entitling the applicant to repayment. The applicant's construction was not supported by the text or context of the agreements.

Parties
Applicant: BWT Aktiengesellschaft; 1st Respondent: Force India Formula One Team Limited (In Liquidation); 2nd Respondent: Geoffrey Paul Rowley (as Liquidator of Force India Formula One Team Limited)
Jurisdiction
England and Wales
Judgment Date
23 November 2020
Procedural Posture
Insolvency Appeal / Judgment on Appeal Against Rejection of Proof of Debt
Outcome
Application dismissed
Legal Topics
Proof of Debt, Construction of Contract, Sponsorship Agreement, Liquidation, Variation of Contract
Insolvency Contract Proof of Debt Construction of Contract Sponsorship Agreement Liquidation Variation of Contract

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 11 Party arguments 2 Amounts and remedies 2
Sign in to unlock

Parties

BWT Aktiengesellschaft

Applicant

Force India Formula One Team Limited (In Liquidation)

1st Respondent

Geoffrey Paul Rowley (as Liquidator of Force India Formula One Team Limited)

2nd Respondent

Procedural Posture

Insolvency Appeal / Judgment on Appeal Against Rejection of Proof of Debt

Legal Issues

  1. 1 Whether the applicant has a claim in the liquidation for repayment of certain sponsorship payments as a debt
  2. 2 Proper construction of the Contribution and Rights Agreement and Deed of Variation regarding repayment obligations on termination

Ratio Decidendi

The Deed of Variation did not displace the original contractual regime under clause 18.2 of the C&RA, which expressly provided that payments made prior to termination for convenience were to be retained by Force India with no pro rata reimbursement. The conditions for the variation to take effect were not fulfilled, and there was no contractual or general law debt entitling the applicant to repayment. The applicant's construction was not supported by the text or context of the agreements.

Court Disposition

Application dismissed

Orders

  • The application by BWT Aktiengesellschaft is dismissed.
  • No order on quantum as the subsidiary issue does not arise.