Brake & Ors v Lowes & Ors (Ruling on striking out the Bankruptcy Application)

Brake & Ors v Lowes & Ors (Ruling on striking out the Bankruptcy Application)

The Brakes, whether as trustees of the Brake Family Settlement or as bankrupts, do not have standing to seek the relief in relation to the cottage transaction under section 303 of the Insolvency Act 1986. As trustees, they are outsiders to the bankruptcy process and not creditors or contributories. As bankrupts, they have no substantial financial interest in the outcome of the transaction, and their revesting claim under section 283A is being dealt with elsewhere and does not confer standing for the relief sought. The application to strike out succeeds for relief (a), (b), (f), and ancillary parts of (c).

Parties
Applicant/respondent (as Trustee of the Brake Family Settlement and as Bankrupt/former Bankrupt): Nihal Mohammed Kamal Brake; Applicant/respondent (as Trustee of the Brake Family Settlement and as Bankrupt/former Bankrupt): Andrew Young Brake; Respondent/applicant (as Joint Liquidator of Stay in Style Partnership (in Liquidation)): Simon Lowes; Respondent/applicant (as Joint Liquidator of Stay in Style Partnership (in Liquidation)): Richard Toone; Respondent/applicant (as Former Trustee in Bankruptcy of Nihal Brake and Andrew Brake): Duncan Kenric Swift; Respondent/applicant: The Chedington Court Estate Limited
Jurisdiction
England and Wales
Judgment Date
02 March 2020
Procedural Posture
Bankruptcy/insolvency Application / Application to Strike Out Parts of Bankruptcy Application
Outcome
application to strike out granted in part
Legal Topics
Standing in Insolvency Proceedings, Relief Against Trustee in Bankruptcy, Sale of Assets in Bankruptcy, Persons Aggrieved Under Insolvency Act
Insolvency Law Bankruptcy Law Standing in Insolvency Proceedings Relief Against Trustee in Bankruptcy Sale of Assets in Bankruptcy Persons Aggrieved Under Insolvency Act

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 15 Party arguments 2
Sign in to unlock

Parties

Nihal Mohammed Kamal Brake

Applicant/respondent (as Trustee of the Brake Family Settlement and as Bankrupt/former Bankrupt)

Andrew Young Brake

Applicant/respondent (as Trustee of the Brake Family Settlement and as Bankrupt/former Bankrupt)

Simon Lowes

Respondent/applicant (as Joint Liquidator of Stay in Style Partnership (in Liquidation))

Richard Toone

Respondent/applicant (as Joint Liquidator of Stay in Style Partnership (in Liquidation))

Duncan Kenric Swift

Respondent/applicant (as Former Trustee in Bankruptcy of Nihal Brake and Andrew Brake)

The Chedington Court Estate Limited

Respondent/applicant

Procedural Posture

Bankruptcy/insolvency Application / Application to Strike Out Parts of Bankruptcy Application

Legal Issues

  1. 1 Whether the Brakes (as trustees of the Brake Family Settlement and/or as bankrupts) have standing to seek relief in relation to the transaction concerning West Axnoller Cottage and the ransom strip under section 303 of the Insolvency Act 1986
  2. 2 Whether relief (a), (b), (f), and ancillary parts of (c) in the Bankruptcy Application should be struck out for lack of standing

Ratio Decidendi

The Brakes, whether as trustees of the Brake Family Settlement or as bankrupts, do not have standing to seek the relief in relation to the cottage transaction under section 303 of the Insolvency Act 1986. As trustees, they are outsiders to the bankruptcy process and not creditors or contributories. As bankrupts, they have no substantial financial interest in the outcome of the transaction, and their revesting claim under section 283A is being dealt with elsewhere and does not confer standing for the relief sought. The application to strike out succeeds for relief (a), (b), (f), and ancillary parts of (c).

Court Disposition

application to strike out granted in part

Orders

  • Relief (a), (b), (f), and such parts of (c) as are ancillary to the transaction concerning the cottage are struck out from the Bankruptcy Application.