Neumans LLP (A Firm) v Andrew Andronikou & Ors

Neumans LLP (A Firm) v Andrew Andronikou & Ors

Solicitors' fees incurred by a company in unsuccessfully defending a winding up petition are not payable as an expense of an out of court administration under the Insolvency Rules 1986, but may be payable as an expense of the subsequent liquidation. The court has no jurisdiction, under statute or inherent powers, to order otherwise.

Parties
Appellant: Neumans LLP; Respondents: Andrew Andronikou & Ors
Jurisdiction
England and Wales
Judgment Date
24 July 2013
Procedural Posture
Civil Appeal / Appeal From High Court Judgment
Outcome
Appeal dismissed
Legal Topics
Administration Expenses, Liquidation Expenses, Priority of Payments, Jurisdiction Under Insolvency Rules, Costs Orders, Solicitors' Fees in Insolvency
Insolvency Law Civil Procedure Administration Expenses Liquidation Expenses Priority of Payments Jurisdiction Under Insolvency Rules Costs Orders Solicitors' Fees in Insolvency

Case Brief

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Parties

Neumans LLP

Appellant

Andrew Andronikou & Ors

Respondents

Procedural Posture

Civil Appeal / Appeal From High Court Judgment

Legal Issues

  1. 1 Whether solicitors' fees for defending a winding up petition are payable as an expense of an out of court administration
  2. 2 Whether the court has jurisdiction to order payment of such fees as an administration expense
  3. 3 Whether the Insolvency Rules 1986 provide for such payment

Ratio Decidendi

Solicitors' fees incurred by a company in unsuccessfully defending a winding up petition are not payable as an expense of an out of court administration under the Insolvency Rules 1986, but may be payable as an expense of the subsequent liquidation. The court has no jurisdiction, under statute or inherent powers, to order otherwise.

Court Disposition

Appeal dismissed

Orders

  • The appeal is dismissed.