Business Dream Ltd, Re Insolvency Act 1986 [2011] EWHC 2860 (Ch) (02 November 2011)

Business Dream Ltd, Re Insolvency Act 1986 [2011] EWHC 2860 (Ch) (02 November 2011)

The interim moratorium under paragraph 44(4) took effect upon filing the notice of intention to appoint an administrator, rendering the members' resolution for voluntary liquidation and the appointment of Mr Brooksbank as liquidator invalid; therefore, the court had no jurisdiction to sanction the disposal of assets under section 166.

Citation
[2011] EWHC 2860 (Ch)
Parties
Applicant: Christopher Brooksbank; Company: Business Dream Limited; Secured Creditor: Elavon Financial Services Ltd
Jurisdiction
England and Wales
Judgment Date
02 November 2011
Procedural Posture
Insolvency Application / Application for Court Sanction Under Section 166 Insolvency Act 1986
Outcome
Application dismissed for want of jurisdiction
Legal Topics
Appointment of Liquidator, Validity of Liquidation Resolutions, Interim Moratorium Under Administration, Sanction of Asset Sale, Disclaimer of Leases
Insolvency Law Company Law Appointment of Liquidator Validity of Liquidation Resolutions Interim Moratorium Under Administration Sanction of Asset Sale Disclaimer of Leases

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Parties

Christopher Brooksbank

Applicant

Business Dream Limited

Company

Elavon Financial Services Ltd

Secured Creditor

Procedural Posture

Insolvency Application / Application for Court Sanction Under Section 166 Insolvency Act 1986

Legal Issues

  1. 1 Whether the appointment of Mr Brooksbank as liquidator was valid
  2. 2 Whether the interim moratorium under paragraph 44(4) of Schedule B1 prevented the members' resolution for voluntary liquidation
  3. 3 Whether the court should sanction the sale of assets and disclaimer of leases under section 166 of the Insolvency Act 1986

Ratio Decidendi

The interim moratorium under paragraph 44(4) took effect upon filing the notice of intention to appoint an administrator, rendering the members' resolution for voluntary liquidation and the appointment of Mr Brooksbank as liquidator invalid; therefore, the court had no jurisdiction to sanction the disposal of assets under section 166.

Court Disposition

Application dismissed for want of jurisdiction

Orders

  • No sanction granted for sale of assets or disclaimer of leases
  • Application to withdraw paragraph 27 notice may be permitted upon proper application by directors