Kaye v South Oxfordshire District Council & Anor

Kaye v South Oxfordshire District Council & Anor

The liability for non-domestic rates for the entire financial year is a contingent liability to which the company was subject at the date of the CVA, and is therefore provable in the arrangement; the district council is bound by the CVA for the full year's rates, not just the instalments due up to the CVA date.

Parties
Applicant: David Norman Kaye; First Respondent: South Oxfordshire District Council; Second Respondent: Certain Exhibitions Limited
Jurisdiction
England and Wales
Judgment Date
06 December 2013
Procedural Posture
Company Voluntary Arrangement Application / Judgment on Application for Directions
Outcome
Application granted; directions issued.
Legal Topics
Company Voluntary Arrangement, Non Domestic Rates, Proof of Debt, Contingent Liability
Insolvency Local Government Law Company Voluntary Arrangement Non Domestic Rates Proof of Debt Contingent Liability

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Parties

David Norman Kaye

Applicant

South Oxfordshire District Council

First Respondent

Certain Exhibitions Limited

Second Respondent

Procedural Posture

Company Voluntary Arrangement Application / Judgment on Application for Directions

Legal Issues

  1. 1 Whether the liability for non-domestic rates for the full financial year is provable in a company voluntary arrangement or only the instalments due up to the date of the arrangement
  2. 2 Whether the district council is bound by the CVA for the full year's rates or only a pro-rata amount

Ratio Decidendi

The liability for non-domestic rates for the entire financial year is a contingent liability to which the company was subject at the date of the CVA, and is therefore provable in the arrangement; the district council is bound by the CVA for the full year's rates, not just the instalments due up to the CVA date.

Court Disposition

Application granted; directions issued.

Orders

  • District council allowed to prove in the CVA for the full amount of outstanding non-domestic rates for the year 2013 to 2014.
  • Both parties' costs to be treated as an expense of the CVA, subject to supervisor having sufficient funds.