Sunberry Properties Ltd v Innovate Logistics Ltd & Ors [2008] EWHC 2450 (Ch) (15 July 2008)

Sunberry Properties Ltd v Innovate Logistics Ltd & Ors [2008] EWHC 2450 (Ch) (15 July 2008)

Leave to commence proceedings is granted because the administrators' conduct in granting a licence in breach of the alienation covenant, without informing the landlords or the court, was reprehensible and the purpose of administration had already been achieved by the sale. The landlords' proprietary interests were...

Source-derived case information.

Citation
[2008] EWHC 2450 (Ch)
Parties
Applicant: Sunberry Properties Limited; First Respondent: Innovate Logistics Limited (In Administration); Second Respondent: Yearsley Is Limited; Second Respondent: Yearsley Newark Limited; Second Respondent: Yearsley Bristol Limited; Second Respondent: Yearsley Holmewood Limited; Second Respondent: Yearsley Scunthorpe Limited
Jurisdiction
England and Wales
Judgment Date
15 July 2008
Procedural Posture
Application for Leave to Commence Proceedings Under Insolvency Act / Judgment
Outcome
Application granted
Legal Topics
Administration Order, Alienation Covenant, Licence to Occupy, Landlord Rights
Insolvency Property Administration Order Alienation Covenant Licence to Occupy Landlord Rights

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Parties

Sunberry Properties Limited

Applicant

Innovate Logistics Limited (In Administration)

First Respondent

Yearsley Is Limited

Second Respondent

Yearsley Newark Limited

Second Respondent

Yearsley Bristol Limited

Second Respondent

Yearsley Holmewood Limited

Second Respondent

Yearsley Scunthorpe Limited

Second Respondent

Procedural Posture

Application for Leave to Commence Proceedings Under Insolvency Act / Judgment

Legal Issues

  1. 1 Whether leave should be granted to commence proceedings for termination of occupational licence granted in breach of alienation covenant during administration
  2. 2 Whether administrators' conduct in granting licence without landlord's knowledge was lawful

Ratio Decidendi

Leave to commence proceedings is granted because the administrators' conduct in granting a licence in breach of the alienation covenant, without informing the landlords or the court, was reprehensible and the purpose of administration had already been achieved by the sale. The landlords' proprietary interests were improperly disregarded.

Court Disposition

Application granted

Orders

  • Leave granted to applicant to commence proceedings for immediate termination of occupational licence granted to second respondents in breach of alienation covenant