Stephen, Re Grant Estates Ltd [2011] ScotCS CSOH_119 (08 July 2011)

Stephen, Re Grant Estates Ltd [2011] ScotCS CSOH_119 (08 July 2011)

The floating charge qualifies as a qualifying floating charge under paragraph 14(2)(b) of Schedule B1 to the Insolvency Act 1986, as only one of the sub-paragraphs needs to be satisfied; therefore, the appointment of administrators was valid and cannot be reduced on the ground argued by the petitioner.

Citation
[2011] ScotCS CSOH_119
Parties
Petitioner: Ruari Grant Stephen; First Respondent (administrator): Thomas Campbell McLennan; Second Respondent (administrator): Kenneth Robert Craig; Third Respondent (appointing Creditor): The Royal Bank of Scotland
Jurisdiction
Scotland
Judgment Date
08 July 2011
Procedural Posture
Petition Under Paragraph 74 of Schedule B1 to the Insolvency Act 1986 / Interlocutory Hearing, Motion to Reduce Appointment of Administrators
Outcome
motion refused
Legal Topics
Appointment of Administrators, Qualifying Floating Charge, Challenge to Administrator Appointment, Management Powers in Administration
Insolvency Company Law Appointment of Administrators Qualifying Floating Charge Challenge to Administrator Appointment Management Powers in Administration

Case Brief

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Parties

Ruari Grant Stephen

Petitioner

Thomas Campbell McLennan

First Respondent (administrator)

Kenneth Robert Craig

Second Respondent (administrator)

The Royal Bank of Scotland

Third Respondent (appointing Creditor)

Procedural Posture

Petition Under Paragraph 74 of Schedule B1 to the Insolvency Act 1986 / Interlocutory Hearing, Motion to Reduce Appointment of Administrators

Legal Issues

  1. 1 Whether the floating charge qualifies under paragraph 14 of Schedule B1 to the Insolvency Act 1986
  2. 2 Whether the company or its directors have power to challenge the appointment of administrators
  3. 3 Whether the appointment of administrators should be reduced for failure to comply with statutory requirements

Ratio Decidendi

The floating charge qualifies as a qualifying floating charge under paragraph 14(2)(b) of Schedule B1 to the Insolvency Act 1986, as only one of the sub-paragraphs needs to be satisfied; therefore, the appointment of administrators was valid and cannot be reduced on the ground argued by the petitioner.

Court Disposition

motion refused

Orders

  • Petitioner's motion to reduce the appointment of administrators is rejected.
  • Parties to appear before the Court at a hearing to coincide with proceedings brought by the company.