James Borg-Olivier v Andrew Knowles & Ors

James Borg-Olivier v Andrew Knowles & Ors

The floating charge was not enforceable at the time of the administrators' appointment because the debt had been discharged by a third party payment made as agent for and on behalf of the debtor, with the creditor's bank acting as agent to receive payment. Therefore, the appointment of administrators was invalid.

Parties
Applicant: James Borg-Olivier; First Respondent: Andrew Knowles; Second Respondent: Michael Vincent Lennon; Third Respondent: Goldcrest Finance Limited; Fourth Respondent: Impactt Properties Limited
Jurisdiction
England and Wales
Judgment Date
22 April 2022
Procedural Posture
Insolvency Application / Judgment on Originating Application Notice
Outcome
Application granted
Legal Topics
Appointment of Administrators, Enforceability of Floating Charge, Third Party Payment of Debt, Standing to Challenge Administrator Appointment
Insolvency Law Company Law Appointment of Administrators Enforceability of Floating Charge Third Party Payment of Debt Standing to Challenge Administrator Appointment

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Parties

James Borg-Olivier

Applicant

Andrew Knowles

First Respondent

Michael Vincent Lennon

Second Respondent

Goldcrest Finance Limited

Third Respondent

Impactt Properties Limited

Fourth Respondent

Procedural Posture

Insolvency Application / Judgment on Originating Application Notice

Legal Issues

  1. 1 Whether the floating charge was enforceable at the time of the administrators' appointment
  2. 2 Whether third party payment discharged the debt under the charge
  3. 3 Whether the appointment of administrators was valid

Ratio Decidendi

The floating charge was not enforceable at the time of the administrators' appointment because the debt had been discharged by a third party payment made as agent for and on behalf of the debtor, with the creditor's bank acting as agent to receive payment. Therefore, the appointment of administrators was invalid.

Court Disposition

Application granted

Orders

  • Declaration that the appointment of administrators was invalid and the company was not validly placed into administration