Carillion Construction Ltd v Hussain & Anor (Liquidators of Simon Carves Ltd) & Anor (Rev 1)

Carillion Construction Ltd v Hussain & Anor (Liquidators of Simon Carves Ltd) & Anor (Rev 1)

The letters of support did not create legally enforceable obligations binding on Punj Lloyd Ltd; there is no evidence of a transaction at undervalue or statutory purpose as required by section 423; the application is speculative and unsupported, and leave to bring proceedings is refused.

Parties
Applicant: Carillion Construction Ltd; Respondents: Zelf Hussain and Robert Jonathan Hunt; Respondent: Simon Carves Ltd
Jurisdiction
England and Wales
Judgment Date
27 March 2013
Procedural Posture
Application for Leave Under Insolvency Act / Ruling on Application for Leave Under Section 424(1)(a)
Outcome
Application dismissed
Legal Topics
Transactions at Undervalue, Letters of Support, Liquidation, Enforceability of Comfort Letters
Insolvency Company Law Transactions at Undervalue Letters of Support Liquidation Enforceability of Comfort Letters

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Parties

Carillion Construction Ltd

Applicant

Zelf Hussain and Robert Jonathan Hunt

Respondents

Simon Carves Ltd

Respondent

Procedural Posture

Application for Leave Under Insolvency Act / Ruling on Application for Leave Under Section 424(1)(a)

Legal Issues

  1. 1 Whether letters of support issued by Punj Lloyd Ltd to Simon Carves Ltd created legally enforceable obligations
  2. 2 Whether there was a transaction at undervalue within the meaning of section 423 of the Insolvency Act 1986
  3. 3 Whether the applicant has a realistic prospect of establishing a claim under section 423

Ratio Decidendi

The letters of support did not create legally enforceable obligations binding on Punj Lloyd Ltd; there is no evidence of a transaction at undervalue or statutory purpose as required by section 423; the application is speculative and unsupported, and leave to bring proceedings is refused.

Court Disposition

Application dismissed

Orders

  • Leave to bring proceedings under section 423 is refused
  • Application under section 424(1)(a) is dismissed