In the matter of C.C.T. Logistics Limited (in liquidation)

In the matter of C.C.T. Logistics Limited (in liquidation)

CCI’s payment of the Barclays overdraft was a voluntary payment, not made at the company’s request or with its authority prior to liquidation, and thus did not create a provable debt or unjust enrichment claim. The Libertas fee of £5,212 was a loan to the company and properly admitted. The remainder of CCI’s proof was invalid. The votes cast by CCI in respect of the invalid debts at the creditors’ meeting were invalid, and the applicant’s nominee should be appointed as liquidator without a further meeting, as the outcome is arithmetically clear.

Parties
Applicant: Levy & Partners Limited; First Respondent: Mr Nicholas Barnett (as liquidator of C. C. T. Logistics Limited); Second Respondent: C. C. T. Logistics Limited (In Liquidation); Third Respondent: CCT International Limited
Jurisdiction
England and Wales
Judgment Date
11 September 2024
Procedural Posture
Insolvency Appeal / Judgment After Contested Hearing
Outcome
Appeal allowed in part
Legal Topics
Creditors' Voting Rights, Proof of Debt, Liquidator Appointment, Unjust Enrichment, Directors' Duties
Insolvency Company Law Creditors' Voting Rights Proof of Debt Liquidator Appointment Unjust Enrichment Directors' Duties

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Parties

Levy & Partners Limited

Applicant

Mr Nicholas Barnett (as liquidator of C. C. T. Logistics Limited)

First Respondent

C. C. T. Logistics Limited (In Liquidation)

Second Respondent

CCT International Limited

Third Respondent

Procedural Posture

Insolvency Appeal / Judgment After Contested Hearing

Legal Issues

  1. 1 Whether CCT International Limited's proof of debt for £51,412.83 was valid for voting at creditors' meeting
  2. 2 Whether the payment by CCI of the Barclays overdraft was voluntary and thus not provable
  3. 3 Whether the Libertas fee was a loan and properly admitted as a debt

Ratio Decidendi

CCI’s payment of the Barclays overdraft was a voluntary payment, not made at the company’s request or with its authority prior to liquidation, and thus did not create a provable debt or unjust enrichment claim. The Libertas fee of £5,212 was a loan to the company and properly admitted. The remainder of CCI’s proof was invalid. The votes cast by CCI in respect of the invalid debts at the creditors’ meeting were invalid, and the applicant’s nominee should be appointed as liquidator without a further meeting, as the outcome is arithmetically clear.

Court Disposition

Appeal allowed in part

Orders

  • The decision to admit CCI’s proof of debt (save for the Libertas fee of £5,212) is reversed.
  • The votes cast by CCI in respect of the invalid debts at the creditors’ meeting of 26 August 2021 are declared invalid.