Heis & Ors v F M Front Door Ltd [2011] ScotCS CSOH_175 (21 October 2011)

Heis & Ors v F M Front Door Ltd [2011] ScotCS CSOH_175 (21 October 2011)

FMFD was in default under the loan agreement due to late payment and material adverse effect; no contractual variation or personal bar was established. FMFD is unable to pay its debts, satisfying the statutory requirements for administration. An administration order is likely to achieve the statutory purpose.

Citation
[2011] ScotCS CSOH_175
Parties
Petitioner: Richard Heis, Michael Pink, Richard Fleming and Blair Carnegie Nimmo, Joint Building Society Special Administrators of Dunfermline Building Society; Respondent: F M Front Door Limited
Jurisdiction
Scotland
Judgment Date
21 October 2011
Procedural Posture
Administration Petition / Final Judgment
Outcome
petition granted
Legal Topics
Administration Order, Default, Variation of Contract, Personal Bar, Material Adverse Effect, Cash Flow Insolvency, Balance Sheet Insolvency
Insolvency Contract Administration Order Default Variation of Contract Personal Bar Material Adverse Effect Cash Flow Insolvency +1 more

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Parties

Richard Heis, Michael Pink, Richard Fleming and Blair Carnegie Nimmo, Joint Building Society Special Administrators of Dunfermline Building Society

Petitioner

F M Front Door Limited

Respondent

Procedural Posture

Administration Petition / Final Judgment

Legal Issues

  1. 1 Was FM Front Door Limited in default under the loan agreement?
  2. 2 Did the parties vary the contract regarding payment notification?
  3. 3 Did Dunfermline Building Society acquiesce in late payment, creating a personal bar?

Ratio Decidendi

FMFD was in default under the loan agreement due to late payment and material adverse effect; no contractual variation or personal bar was established. FMFD is unable to pay its debts, satisfying the statutory requirements for administration. An administration order is likely to achieve the statutory purpose.

Court Disposition

petition granted

Orders

  • FMFD's pleas in law repelled
  • Administration order made