Duffy & Anor v Mederco (Cardiff) Ltd

Duffy & Anor v Mederco (Cardiff) Ltd

The court has jurisdiction to make a retrospective administration order, but only up to 364 days prior to the date of the order. It cannot extend an administration after expiry, nor can it make successive retrospective orders to fill a gap. The failure to obtain consent from all secured creditors (including investors with equitable liens) likely invalidated the previous extension. The appropriate remedy is a single retrospective administration order taking effect 364 days before the present order, with a prospective extension to allow completion of the administration's purpose.

Parties
Applicant: Philip Francis Duffy; Applicant: Steven Muncaster; Respondent: Mederco (Cardiff) Ltd
Jurisdiction
England and Wales
Judgment Date
23 February 2021
Procedural Posture
Insolvency/administration / Application for Retrospective Administration Order and Extension
Outcome
application granted in part
Legal Topics
Administration Orders, Retrospective Orders, Secured Creditors, Extension of Administration, EU Insolvency Regulation
Insolvency Company Law Administration Orders Retrospective Orders Secured Creditors Extension of Administration EU Insolvency Regulation

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Parties

Philip Francis Duffy

Applicant

Steven Muncaster

Applicant

Mederco (Cardiff) Ltd

Respondent

Procedural Posture

Insolvency/administration / Application for Retrospective Administration Order and Extension

Legal Issues

  1. 1 Whether the court can make a retrospective administration order after expiry of a previous administration period
  2. 2 Whether the court can extend the period of administration with retrospective effect
  3. 3 Whether the court can make successive retrospective administration orders to cover a gap in administration

Ratio Decidendi

The court has jurisdiction to make a retrospective administration order, but only up to 364 days prior to the date of the order. It cannot extend an administration after expiry, nor can it make successive retrospective orders to fill a gap. The failure to obtain consent from all secured creditors (including investors with equitable liens) likely invalidated the previous extension. The appropriate remedy is a single retrospective administration order taking effect 364 days before the present order, with a prospective extension to allow completion of the administration's purpose.

Court Disposition

application granted in part

Orders

  • Administration order made with retrospective effect to 364 days before the date of the order
  • Administration extended prospectively to 17 January 2022