Thorniley & Anor v HM Revenue & Customs & Anor

Thorniley & Anor v HM Revenue & Customs & Anor

The prescribed part under s.176A of the Insolvency Act 1986 is held for the benefit of unsecured creditors alone; secured creditors, including floating charge holders, are excluded from participating in the prescribed part in respect of any unsecured shortfall.

Source-derived case information.

Parties
Applicant: David Richard Thorniley; Applicant: Peter John Forsey; Respondent: HM Revenue & Customs; Respondent: Harris N. A. (Successor by Merger to Harris Trust & Savings Bank)
Jurisdiction
England and Wales
Judgment Date
05 February 2008
Procedural Posture
Application for Directions in Administration / Judgment
Outcome
Declaration granted
Legal Topics
Prescribed Part Distribution, Floating Charge, Unsecured Creditors, Enterprise Act 2002, Insolvency Act 1986
Insolvency Company Law Prescribed Part Distribution Floating Charge Unsecured Creditors Enterprise Act 2002 Insolvency Act 1986

Source-derived case record

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Parties

David Richard Thorniley

Applicant

Peter John Forsey

Applicant

HM Revenue & Customs

Respondent

Harris N. A. (Successor by Merger to Harris Trust & Savings Bank)

Respondent

Procedural Posture

Application for Directions in Administration / Judgment

Legal Issues

  1. 1 Whether the prescribed part under s.176A of the Insolvency Act 1986 is available to satisfy the unsecured shortfall of a secured creditor, specifically a floating charge holder

Ratio Decidendi

The prescribed part under s.176A of the Insolvency Act 1986 is held for the benefit of unsecured creditors alone; secured creditors, including floating charge holders, are excluded from participating in the prescribed part in respect of any unsecured shortfall.

Court Disposition

Declaration granted

Orders

  • Second Respondent is not entitled to participate in the prescribed part in respect of any claim based on any shortfall in its security.