Cresta Estates Limited & Ors v MPB Developments Limited & Ors

Cresta Estates Limited & Ors v MPB Developments Limited & Ors

Mr Hilton and Mr Welsh were the real parties to the litigation, acted for personal benefit, pursued a speculative defence without genuine belief in solvency, and caused substantial costs to be incurred. Their conduct justified a non-party costs order against them for the costs of the petition and related proceedings.

Parties
Applicant: Cresta Estates Limited; Applicant: Luxor Properties Limited; Applicant: Stanbreck Properties Ltd; Respondent: MPB Developments Limited; Respondent: Paul Hilton; Respondent: Matthew Welsh
Jurisdiction
England and Wales
Judgment Date
29 May 2025
Procedural Posture
Insolvency Petition / Costs Hearing Post Winding Up Order
Outcome
Costs order granted against Mr Hilton and Mr Welsh personally for the Petitioners' and Company's costs of the petition and related proceedings.
Legal Topics
Non Party Costs Orders, Director Liability, Winding Up, Solvency, Settlement Negotiations
Insolvency Company Law Civil Procedure Non Party Costs Orders Director Liability Winding Up Solvency Settlement Negotiations

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Parties

Cresta Estates Limited

Applicant

Luxor Properties Limited

Applicant

Stanbreck Properties Ltd

Applicant

MPB Developments Limited

Respondent

Paul Hilton

Respondent

Matthew Welsh

Respondent

Procedural Posture

Insolvency Petition / Costs Hearing Post Winding Up Order

Legal Issues

  1. 1 Whether directors should be personally liable for costs of defending a winding up petition
  2. 2 Whether directors acted for personal benefit and with impropriety
  3. 3 Whether the defence of the petition was speculative and not in the company's best interests

Ratio Decidendi

Mr Hilton and Mr Welsh were the real parties to the litigation, acted for personal benefit, pursued a speculative defence without genuine belief in solvency, and caused substantial costs to be incurred. Their conduct justified a non-party costs order against them for the costs of the petition and related proceedings.

Court Disposition

Costs order granted against Mr Hilton and Mr Welsh personally for the Petitioners' and Company's costs of the petition and related proceedings.

Orders

  • Mr Hilton and Mr Welsh to pay the Petitioners' costs of the petition and related proceedings.
  • Mr Hilton and Mr Welsh to pay the Company's costs of the petition.