Jonathan Robert Lloyd Parkins v Timothy Francis Lage Hayes & Anor

Jonathan Robert Lloyd Parkins v Timothy Francis Lage Hayes & Anor

French & Co's claimed debt was not established on the balance of probabilities, as required for voting in the IVA. The evidence did not show Mr Hayes was liable in debt to French & Co for the sums claimed, particularly as most were legally aided and no fund had been recovered. Therefore, there was a material irregularity in the approval of the IVA under s.262(1)(b) Insolvency Act 1986.

Parties
Applicant: Jonathan Robert Lloyd Parkins; First Respondent: Timothy Francis Lage Hayes; Second Respondent: Daragh Duffy
Jurisdiction
England and Wales
Judgment Date
31 July 2025
Procedural Posture
Insolvency Application (iva Challenge) / Judgment After Contested Application Under S.262 Insolvency Act 1986
Outcome
Application allowed (finding of material irregularity); consequential orders reserved.
Legal Topics
Individual Voluntary Arrangements (iva), Material Irregularity, Unfair Prejudice, Voting Rights of Creditors, Legal Aid Statutory Charge, Solicitor's Equitable Lien
Insolvency Civil Procedure Individual Voluntary Arrangements (iva) Material Irregularity Unfair Prejudice Voting Rights of Creditors Legal Aid Statutory Charge Solicitor's Equitable Lien

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Parties

Jonathan Robert Lloyd Parkins

Applicant

Timothy Francis Lage Hayes

First Respondent

Daragh Duffy

Second Respondent

Procedural Posture

Insolvency Application (iva Challenge) / Judgment After Contested Application Under S.262 Insolvency Act 1986

Legal Issues

  1. 1 Whether the IVA was approved following a material irregularity under s.262(1)(b) Insolvency Act 1986
  2. 2 Whether the IVA unfairly prejudiced the applicant under s.262(1)(a) Insolvency Act 1986
  3. 3 Whether French & Co's debt was properly admitted for voting purposes

Ratio Decidendi

French & Co's claimed debt was not established on the balance of probabilities, as required for voting in the IVA. The evidence did not show Mr Hayes was liable in debt to French & Co for the sums claimed, particularly as most were legally aided and no fund had been recovered. Therefore, there was a material irregularity in the approval of the IVA under s.262(1)(b) Insolvency Act 1986.

Court Disposition

Application allowed (finding of material irregularity); consequential orders reserved.

Orders

  • Matter restored for further argument as to consequential orders and costs.