DKLL Solicitors v Revenue and Customs

DKLL Solicitors v Revenue and Customs

The partnership is unable to pay its debts, and the proposed administration and pre-pack sale is reasonably likely to achieve a better result for creditors than liquidation. The court’s discretion is exercised in favour of making the administration order, taking into account the interests of employees and clients, and the absence of persuasive evidence from the Revenue to the contrary.

Parties
Claimant: DKLL Solicitors; Defendant: Her Majesty’s Revenue and Customs
Jurisdiction
England and Wales
Judgment Date
06 March 2007
Procedural Posture
Administration Application / Judgment on Application for Administration Order
Outcome
Administration order granted
Legal Topics
Administration Order, Pre Pack Sale, Creditor Rights, Partnership Insolvency
Insolvency Partnership Law Administration Order Pre Pack Sale Creditor Rights Partnership Insolvency

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Parties

DKLL Solicitors

Claimant

Her Majesty’s Revenue and Customs

Defendant

Procedural Posture

Administration Application / Judgment on Application for Administration Order

Legal Issues

  1. 1 Whether the partnership is unable to pay its debts
  2. 2 Whether an administration order is reasonably likely to achieve a better result for creditors than liquidation
  3. 3 Whether the court should exercise its discretion to grant the administration order despite opposition from the majority creditor

Ratio Decidendi

The partnership is unable to pay its debts, and the proposed administration and pre-pack sale is reasonably likely to achieve a better result for creditors than liquidation. The court’s discretion is exercised in favour of making the administration order, taking into account the interests of employees and clients, and the absence of persuasive evidence from the Revenue to the contrary.

Court Disposition

Administration order granted

Orders

  • Administration order made in relation to DKLL Solicitors
  • Administrators appointed to effect immediate sale to Drummonds Kirkwood LLP