Raithatha v Williamson

Raithatha v Williamson

A bankrupt's entitlement to payment under a pension scheme, even if not yet elected, constitutes income under s.310(7) of the Insolvency Act 1986 and can be subject to an income payments order; the court may grant an injunction to prevent dissipation of pension assets where there is sufficient risk.

Parties
Applicant: Mr Situl Devji Raithatha; Respondent: Mr Michael Roy Williamson
Jurisdiction
England and Wales
Judgment Date
04 April 2012
Procedural Posture
Bankruptcy / Judgment
Outcome
Trustee's application for IPO allowed; injunction to be continued.
Legal Topics
Income Payments Order, Pension Entitlements, Trustee Powers, Injunctions
Insolvency Bankruptcy Pensions Income Payments Order Pension Entitlements Trustee Powers Injunctions

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Parties

Mr Situl Devji Raithatha

Applicant

Mr Michael Roy Williamson

Respondent

Procedural Posture

Bankruptcy / Judgment

Legal Issues

  1. 1 Whether an income payments order can be made where the bankrupt has an unexercised entitlement to elect to draw a pension
  2. 2 Whether it was appropriate for the trustee to apply without notice for an injunction restraining the respondent from dealing with pension rights

Ratio Decidendi

A bankrupt's entitlement to payment under a pension scheme, even if not yet elected, constitutes income under s.310(7) of the Insolvency Act 1986 and can be subject to an income payments order; the court may grant an injunction to prevent dissipation of pension assets where there is sufficient risk.

Court Disposition

Trustee's application for IPO allowed; injunction to be continued.

Orders

  • Income payments order may be made in respect of pension entitlements not yet elected.
  • Injunction restraining respondent from dealing with pension rights to continue until proceedings are finally determined unless satisfactory undertaking is agreed.