Gabb v Earthly Energy Ltd

Gabb v Earthly Energy Ltd

The company is unable to pay its debts, but the applicant failed to demonstrate that an administration order is reasonably likely to achieve a better result for creditors than immediate liquidation. Therefore, the statutory test for administration is not met. The court declines to grant a winding up order, preferring to defer to the pending HMRC petition. Costs are awarded to the respondent as the successful party.

Parties
Applicant: Roger Gabb; Respondent: Earthly Energy Limited
Jurisdiction
England and Wales
Judgment Date
02 May 2014
Procedural Posture
Insolvency Application / Judgment on Application for Administration Order and Alternative Winding Up Order
Outcome
Application for administration order and alternative winding up order dismissed. Costs awarded to respondent.
Legal Topics
Administration Order, Winding Up, Creditor's Application, Standing of Creditor, Purpose of Administration, Costs
Insolvency Law Company Law Administration Order Winding Up Creditor's Application Standing of Creditor Purpose of Administration Costs

Case Brief

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Parties

Roger Gabb

Applicant

Earthly Energy Limited

Respondent

Procedural Posture

Insolvency Application / Judgment on Application for Administration Order and Alternative Winding Up Order

Legal Issues

  1. 1 Whether the company is unable to pay its debts
  2. 2 Whether an administration order is reasonably likely to achieve the purpose of administration
  3. 3 Whether a winding up order should be granted as an alternative

Ratio Decidendi

The company is unable to pay its debts, but the applicant failed to demonstrate that an administration order is reasonably likely to achieve a better result for creditors than immediate liquidation. Therefore, the statutory test for administration is not met. The court declines to grant a winding up order, preferring to defer to the pending HMRC petition. Costs are awarded to the respondent as the successful party.

Court Disposition

Application for administration order and alternative winding up order dismissed. Costs awarded to respondent.

Orders

  • All applications before the court are dismissed.
  • Applicant to pay respondent's costs, to be assessed if not agreed.