Rochay Productions Ltd, Re

Rochay Productions Ltd, Re

The Third Respondent's proof of debt was unsupported by evidence and was knowingly submitted on a false basis. The Third Respondent's conduct in opposing the application until the last moment justified an indemnity costs order. The Second Respondent, as a newly appointed director and chair, acted reasonably on advice and did not act in bad faith or with sufficient impropriety to justify a personal costs order.

Parties
Applicant: Opus Art Limited; First Respondent: Mr Nedim Aiylan (as Liquidator of Rochay Productions Limited); Second Respondent: Medina Williamson; Third Respondent: Rochay Elite Limited
Jurisdiction
England and Wales
Judgment Date
07 July 2020
Procedural Posture
Insolvency Application (challenge to Proof of Debt) / Costs Determination Following Unopposed Substantive Application
Outcome
Application allowed; costs awarded against Third Respondent; costs application against Second Respondent dismissed.
Legal Topics
Proof of Debt, Costs Orders, Creditors' Meetings, Liquidation, Directors' Duties
Insolvency Law Civil Procedure Proof of Debt Costs Orders Creditors' Meetings Liquidation Directors' Duties

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Parties

Opus Art Limited

Applicant

Mr Nedim Aiylan (as Liquidator of Rochay Productions Limited)

First Respondent

Medina Williamson

Second Respondent

Rochay Elite Limited

Third Respondent

Procedural Posture

Insolvency Application (challenge to Proof of Debt) / Costs Determination Following Unopposed Substantive Application

Legal Issues

  1. 1 Whether the Third Respondent's proof of debt should be admitted for voting purposes
  2. 2 Whether costs should be awarded against the Second and/or Third Respondents

Ratio Decidendi

The Third Respondent's proof of debt was unsupported by evidence and was knowingly submitted on a false basis. The Third Respondent's conduct in opposing the application until the last moment justified an indemnity costs order. The Second Respondent, as a newly appointed director and chair, acted reasonably on advice and did not act in bad faith or with sufficient impropriety to justify a personal costs order.

Court Disposition

Application allowed; costs awarded against Third Respondent; costs application against Second Respondent dismissed.

Orders

  • The appeal against the admission of the Third Respondent’s proof is allowed and the proof is struck out.
  • The First Respondent is directed to convene a new meeting of creditors for a fresh vote on the liquidator.