Craig v Humberclyde Industrial Finance Group Ltd & Ors [1998] EWCA Civ 1025 (18 June 1998)

Craig v Humberclyde Industrial Finance Group Ltd & Ors [1998] EWCA Civ 1025 (18 June 1998)

The procedure for trustee applications for directions (Re Moritz) is applicable to liquidator applications under s.168(3) Insolvency Act 1986. The judge gave adequate opportunity for submissions. However, after applying set-off under Insolvency Rule 4.90 and considering the 1991 valuation, the debt owed by the Company exceeded the value of the asset, leaving nothing to assign to the Directors. The appeal is allowed.

Citation
[1998] EWCA Civ 1025
Parties
Applicant: Craig; Respondents: Humberclyde Industrial Finance Group Ltd and Others
Jurisdiction
England and Wales
Judgment Date
18 June 1998
Procedural Posture
Civil Appeal / Appeal From the High Court of Justice, Chancery Division
Outcome
Appeal allowed
Legal Topics
Assignment of Causes of Action in Liquidation, Set Off in Insolvency, Procedural Fairness in Court Directions, Trustee Applications for Directions, Valuation of Assets in Insolvency
Insolvency Trusts and Trustees Civil Procedure Assignment of Causes of Action in Liquidation Set Off in Insolvency Procedural Fairness in Court Directions Trustee Applications for Directions Valuation of Assets in Insolvency

Case Brief

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Parties

Craig

Applicant

Humberclyde Industrial Finance Group Ltd and Others

Respondents

Procedural Posture

Civil Appeal / Appeal From the High Court of Justice, Chancery Division

Legal Issues

  1. 1 Whether the procedure applicable to trustee applications for directions (Re Moritz) applies to a liquidator's application under s.168(3) Insolvency Act 1986
  2. 2 Whether the judge failed to give the Humberclyde Group adequate opportunity to address the merits of the actions sought to be assigned
  3. 3 Whether, after set-off under Insolvency Rule 4.90, there was any cause of action of value to assign to the Directors

Ratio Decidendi

The procedure for trustee applications for directions (Re Moritz) is applicable to liquidator applications under s.168(3) Insolvency Act 1986. The judge gave adequate opportunity for submissions. However, after applying set-off under Insolvency Rule 4.90 and considering the 1991 valuation, the debt owed by the Company exceeded the value of the asset, leaving nothing to assign to the Directors. The appeal is allowed.

Court Disposition

Appeal allowed

Orders

  • Order in terms of paragraph 1 of the order sought by the notice of appeal; assignment to Directors not permitted; revised offer of Humberclyde Group remains open for acceptance.