MccArthy v Tann & Ors

MccArthy v Tann & Ors

The breach of the 21-day time limit for appealing the liquidators' decision was not serious or significant, being only three business days late and not disrupting the liquidation or litigation. The appeal had real prospects of success due to admitted errors in the proof of debt. The court exercised its discretion to extend time and granted inspection of company records as just and beneficial to all contributories.

Parties
Applicant: John McCarthy; Respondent (joint Liquidator): David William Tann; Respondent (joint Liquidator): Keith Aleric Stevens; Respondent: Ivor Desmond Marshall
Jurisdiction
England and Wales
Judgment Date
22 February 2016
Procedural Posture
Company Liquidation / Insolvency / Application for Extension of Time to Appeal Liquidator's Decision and for Inspection of Company Records
Outcome
Application granted
Legal Topics
Extension of Time, Proof of Debt, Liquidation, Inspection of Company Records, Relief From Sanctions
Insolvency Company Law Civil Procedure Extension of Time Proof of Debt Liquidation Inspection of Company Records Relief From Sanctions

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Parties

John McCarthy

Applicant

David William Tann

Respondent (joint Liquidator)

Keith Aleric Stevens

Respondent (joint Liquidator)

Ivor Desmond Marshall

Respondent

Procedural Posture

Company Liquidation / Insolvency / Application for Extension of Time to Appeal Liquidator's Decision and for Inspection of Company Records

Legal Issues

  1. 1 Whether the court should extend time for filing an appeal against the liquidators' decision to admit a proof of debt
  2. 2 Whether the applicant should be permitted to inspect company records under section 155 of the Insolvency Act 1986

Ratio Decidendi

The breach of the 21-day time limit for appealing the liquidators' decision was not serious or significant, being only three business days late and not disrupting the liquidation or litigation. The appeal had real prospects of success due to admitted errors in the proof of debt. The court exercised its discretion to extend time and granted inspection of company records as just and beneficial to all contributories.

Court Disposition

Application granted

Orders

  • Time for filing appeal against the liquidators' decision is extended.
  • Mr. McCarthy and his nominated expert accountant are permitted to inspect the company's books and records for the purpose of challenging the proof of debt, subject to further directions on scope and timing.