NMUL Realisations Ltd, Re

NMUL Realisations Ltd, Re

The failure to give notice to the prior charge holder under paragraph 15 of Schedule B1 of the Insolvency Act 1986 was a procedural irregularity, not a fundamental defect. No substantial injustice was caused, and the court exercised its discretion under Rule 12.64 of the Insolvency Rules 2016 to validate the...

Source-derived case information.

Parties
Applicant: Lee Andrew Causer; Applicant: Danny Nicolaas William Dartnaill; Applicant: Ryan Kevin Grant; Respondent: NMUL Realisations Limited (in administration)
Jurisdiction
England and Wales
Judgment Date
20 January 2021
Procedural Posture
Insolvency Application / Judgment on Validity of Administrators' Appointment
Outcome
application granted; appointment of administrators declared valid
Legal Topics
Appointment of Administrators, Notice Requirements, Floating Charge Priority, Procedural Defects, Remedial Orders
Insolvency Company Law Appointment of Administrators Notice Requirements Floating Charge Priority Procedural Defects Remedial Orders

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Parties

Lee Andrew Causer

Applicant

Danny Nicolaas William Dartnaill

Applicant

Ryan Kevin Grant

Applicant

NMUL Realisations Limited (in administration)

Respondent

Procedural Posture

Insolvency Application / Judgment on Validity of Administrators' Appointment

Legal Issues

  1. 1 Whether failure to give notice to prior charge holder under paragraph 15 of Schedule B1 of the Insolvency Act 1986 renders the appointment of administrators void ab initio or is a procedural defect remediable by court order
  2. 2 Who should have received notice given the dissolution of the prior charge holder
  3. 3 Effect of mistaken satisfaction of a charge at Companies House

Ratio Decidendi

The failure to give notice to the prior charge holder under paragraph 15 of Schedule B1 of the Insolvency Act 1986 was a procedural irregularity, not a fundamental defect. No substantial injustice was caused, and the court exercised its discretion under Rule 12.64 of the Insolvency Rules 2016 to validate the appointment of the administrators.

Court Disposition

application granted; appointment of administrators declared valid

Orders

  • Declaration that the appointment of Lee Andrew Causer, Danny Nicolaas William Dartnaill, and Ryan Kevin Grant as joint administrators of NMUL Realisations Limited is valid notwithstanding failure to give notice under paragraph 15 of Schedule B1 of the Insolvency Act 1986