In the matter of Rockingham Investments Limited [2019] JRC 082 (08 May 2019)

In the matter of Rockingham Investments Limited [2019] JRC 082 (08 May 2019)

The consistent company accounts of ACJ and Rockingham, prepared by chartered accountants and approved by directors, together with the sworn Statement of Affairs by Mr Mabbs, constitute compelling evidence of a loan repayable on demand. The absence of bank records does not negate the loan, and funds advanced by Mr Mabbs to ACJ cannot be set off against the Rockingham loan without clear evidence of a tripartite agreement. The claim should be admitted in the sum shown in the last available accounts.

Citation
[2019] JRC 082
Parties
Debtor: Rockingham Investments Limited; Creditor: ACJ; Alternative Claimant: BTS; Beneficial Owner of Rockingham, Director of ACJ and BTS: Mr Mabbs; Director/shareholder: Mrs Mabbs; Administrator: The Viscount
Jurisdiction
Jersey
Judgment Date
08 May 2019
Procedural Posture
Bankruptcy Review / Court Review of Viscount's Rejection of Claim
Outcome
ACJ's claim admitted in the désastre of Rockingham in the sum of £445,443.
Legal Topics
Désastre Proceedings, Creditors' Claims, Inter Company Loans, Statement of Affairs, Liquidation, Directors' Duties
Insolvency Company Law Désastre Proceedings Creditors' Claims Inter Company Loans Statement of Affairs Liquidation Directors' Duties

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Parties

Rockingham Investments Limited

Debtor

ACJ

Creditor

BTS

Alternative Claimant

Mr Mabbs

Beneficial Owner of Rockingham, Director of ACJ and BTS

Mrs Mabbs

Director/shareholder

The Viscount

Administrator

Procedural Posture

Bankruptcy Review / Court Review of Viscount's Rejection of Claim

Legal Issues

  1. 1 Whether ACJ's claim against Rockingham should be admitted in the désastre
  2. 2 Whether the absence of contemporaneous bank records negates the loan
  3. 3 Whether funds advanced by Mr Mabbs to ACJ can be set off against the Rockingham loan

Ratio Decidendi

The consistent company accounts of ACJ and Rockingham, prepared by chartered accountants and approved by directors, together with the sworn Statement of Affairs by Mr Mabbs, constitute compelling evidence of a loan repayable on demand. The absence of bank records does not negate the loan, and funds advanced by Mr Mabbs to ACJ cannot be set off against the Rockingham loan without clear evidence of a tripartite agreement. The claim should be admitted in the sum shown in the last available accounts.

Court Disposition

ACJ's claim admitted in the désastre of Rockingham in the sum of £445,443.

Orders

  • Viscount directed to admit ACJ's claim in the sum of £445,443.