Rep re Estates and General Development Ltd [2013] JRC 027 (04 February 2013)

Rep re Estates and General Development Ltd [2013] JRC 027 (04 February 2013)

The Court has discretion under Article 49 of the Bankruptcy (Désastre)(Jersey) Law 1990 to assist foreign courts in insolvency matters. The English receivership and the judicial hypothec comply with Jersey law, and there are no local creditors prejudiced. Recognising the receivers' powers is more efficient and cost-effective than alternative procedures and is consistent with comity and the interests of creditors.

Citation
[2013] JRC 027
Parties
Applicant: Joint Fixed Charge Receivers (representors); Respondent: Estates and General Developments Limited
Jurisdiction
Jersey
Judgment Date
04 February 2013
Procedural Posture
Application for Recognition of Receivership / Judgment on Application
Outcome
application granted
Legal Topics
Recognition of Foreign Receivers, Powers of Receivers, Sale of Immovable Property, Assistance to Foreign Courts, Judicial Hypothec
Insolvency Cross Border Insolvency Property Law Recognition of Foreign Receivers Powers of Receivers Sale of Immovable Property Assistance to Foreign Courts Judicial Hypothec

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Parties

Joint Fixed Charge Receivers (representors)

Applicant

Estates and General Developments Limited

Respondent

Procedural Posture

Application for Recognition of Receivership / Judgment on Application

Legal Issues

  1. 1 Whether the Jersey court should recognise and authorise the Joint Fixed Charge Receivers appointed under English law to manage and sell Jersey immovable property.
  2. 2 Whether Article 49 of the Bankruptcy (Désastre)(Jersey) Law 1990 applies to the recognition of receivers appointed by contract rather than by court order.
  3. 3 Whether the powers conferred by the English receivership can be exercised in Jersey, given local property law restrictions.

Ratio Decidendi

The Court has discretion under Article 49 of the Bankruptcy (Désastre)(Jersey) Law 1990 to assist foreign courts in insolvency matters. The English receivership and the judicial hypothec comply with Jersey law, and there are no local creditors prejudiced. Recognising the receivers' powers is more efficient and cost-effective than alternative procedures and is consistent with comity and the interests of creditors.

Court Disposition

application granted

Orders

  • The appointment and authority of the Joint Fixed Charge Receivers to manage and sell the Jersey property is recognised.
  • The receivers are authorised to act as agents of the Company for the purpose of managing and selling the property.