Data Power Systems Ltd & Ors v Safehosts (London) Ltd & Anor

Data Power Systems Ltd & Ors v Safehosts (London) Ltd & Anor

The court cannot be satisfied on the evidence that the statutory purpose of administration is reasonably likely to be achieved. Assertions by both sides are unsupported by cogent, credible evidence. Insolvency alone is insufficient to justify an administration order. The application is therefore treated as a winding up petition and a provisional liquidator is appointed.

Parties
Applicant: Data Power Systems Limited; Applicant: Alisdair James Findlay; Applicant: Safehosts Limited; Respondent: Safehosts (London) Limited; Respondent (proposed Administrator): Michael Durkan; Interested Party: David Pearlman; Further Respondent (proposed Joint Administrator): Simon Robeert Thomas; Further Respondent (proposed Joint Administrator): Shelley Anne Bullman
Jurisdiction
England and Wales
Judgment Date
17 May 2013
Procedural Posture
Insolvency/administration Application / Judgment on Application for Administration Order
Outcome
Application for administration order dismissed; application treated as winding up petition; provisional liquidator appointed; company subsequently wound up.
Legal Topics
Administration Order, Winding Up, Appointment of Provisional Liquidator, Purpose of Administration, Jurisdictional Threshold for Administration
Insolvency Law Company Law Administration Order Winding Up Appointment of Provisional Liquidator Purpose of Administration Jurisdictional Threshold for Administration

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Parties

Data Power Systems Limited

Applicant

Alisdair James Findlay

Applicant

Safehosts Limited

Applicant

Safehosts (London) Limited

Respondent

Michael Durkan

Respondent (proposed Administrator)

David Pearlman

Interested Party

Simon Robeert Thomas

Further Respondent (proposed Joint Administrator)

Shelley Anne Bullman

Further Respondent (proposed Joint Administrator)

Procedural Posture

Insolvency/administration Application / Judgment on Application for Administration Order

Legal Issues

  1. 1 Whether the court should make an administration order in respect of Safehosts (London) Limited
  2. 2 Whether the statutory purpose of administration is reasonably likely to be achieved
  3. 3 Whether the application should be treated as a winding up petition and a provisional liquidator appointed

Ratio Decidendi

The court cannot be satisfied on the evidence that the statutory purpose of administration is reasonably likely to be achieved. Assertions by both sides are unsupported by cogent, credible evidence. Insolvency alone is insufficient to justify an administration order. The application is therefore treated as a winding up petition and a provisional liquidator is appointed.

Court Disposition

Application for administration order dismissed; application treated as winding up petition; provisional liquidator appointed; company subsequently wound up.

Orders

  • Application for administration order dismissed
  • Application treated as winding up petition