Irish Reel Productions Ltd v Capitol Films Ltd

JurisdictionEngland & Wales
JudgeMR JUSTICE BRIGGS,Mr Justice Briggs
Judgment Date10 February 2010
Neutral Citation[2010] EWHC 180 (Ch)
CourtChancery Division
Date10 February 2010
Docket NumberCase No: No 7064 of 2008

[2010] EWHC 180 (Ch)

IN THE HIGH COURT OF JUSTICE

CHANCERY DIVISION

COMPANIES COURT

Before: Mr Justice Briggs

Case No: No 7064 of 2008

and No 407 of 2010

In the Matter of Capitol Films Limited

And in the Matter of the Insolvency Act 1986

As Amended by the Enterprise Act 2002

Between
Irish Reel Productions Limited
and
Capitol Films Limited

Mr Alec McCluskey (instructed by Halliwells LLP, 1 Threadneedle street, London EC2R 8AY) for Irish Reel

Mr Tim Calland (instructed by Harbottle & Lewis LLP, Hanover House, 14 Hanover Square, London W1S 1HP) for Capitol Films Limited

Hearing date: 2 nd February 2010

Approved Judgment

I direct that pursuant to CPR PD 39A paragraph 6.1 no official shorthand note shall be taken of this Judgment and that copies of this version as handed down may be treated as authentic.

MR JUSTICE BRIGGS Mr Justice Briggs

Mr Justice Briggs:

1

During the morning of 2 nd February 2010 I made an Administration Order in relation to Capitol Films Limited (“the Company”). I also dismissed a winding-up petition against the Company which had been presented on 21 st August 2008, and in which Irish Reel Productions Limited (“Irish Reel”) had become petitioner by substitution. Application was made by counsel for Irish Reel for an order that its costs of the petition be paid as an expense in the Administration of the Company. I was also asked to direct pursuant to rule 2.67(3) of the Insolvency Rules 1986 (“the Rules”) that Irish Reel's costs should be paid out of the assets of the Company in priority to the Administrators' expenses and the cost of any security provided by the Administrators.

2

Counsel for the Company submitted that I had no jurisdiction to make either of those orders. Since neither counsel could direct me to any authority on that question, albeit that both acknowledged that there was a practice in the Companies Court to make such orders, I reserved judgment on that issue. My decision on it now follows.

3

Rule 2.12(1) permits ten different classes of person to appear at the hearing of an administration application including, at subparagraph (e), any person who has presented a petition for the winding-up of the company. Rule 2.12(3) provides as follows:

“If the court makes an administration order, the costs of the applicant, and of any person whose costs are allowed by the court, are payable as an expense of the administration.”

Rule 2.67(1) provides that the expenses of the administration are payable in the following order of priority 3/4

“(c) where an administration order was made, the costs of the applicant and any person appearing on the hearing of the application….”

4

Mr Calland for the Company submitted that, in relation to a person who had presented a winding-up petition, and appeared at the hearing of an administration application, those provisions related only to that person's costs of appearing at the hearing of the administration application, rather than to any other costs, and in particular, not to that person's costs in the...

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4 cases
  • Re Portsmouth City Football Club Ltd; Neumans LLP v Andronikou and Others
    • United Kingdom
    • Chancery Division
    • 2 November 2012
    ...Davies J), Unadkat & Co (Accountants) Ltd v Bhardwaj [2007] BCC 452 (HHJ Norris QC sitting as a High Court Judge), Irish Reel Productions Ltd v Capitol Films Ltd [2010] Bus LR 854 (Briggs J) and Rohl v Bickland Ltd [2012] EWHC 706 (Ch) (Mann J). 74 In Re Gosscott (Groundworks) Ltd, the cour......
  • Rohl v Bickland Ltd ((in Administration))
    • United Kingdom
    • Chancery Division
    • 22 March 2012
    ...which was dismissed on the making of an administration order, the petitioner would be entitled to ask for his costs – see Irish Reel Productions v Capital Films Limited [2010] EWHC 180 (Ch). If a floating charge holder, instead of appointing out of court under Schedule B1 paragraph 14, seek......
  • Neumans LLP (A Firm) v Andrew Andronikou and Others
    • United Kingdom
    • Court of Appeal (Civil Division)
    • 24 July 2013
    ... ... by an application for an administration order: see Irish Reel Productions Ltd v. Capitol Films Limited [2010] Bus ... ...
  • Note In The Petition Of Ultimate Invoice Finance Limited For An Administration Order In Respect Of Mcc Building Services Limited
    • United Kingdom
    • Court of Session
    • 2 May 2017
    ...of the Rules. Albeit based on the English Rules, the approach of Briggs J in the case of Irish Reel Productions Ltd v Capitol Films Ltd [2010] EWHC 180 Ch; [2010] Bus L R 854 provides some support for this view. However, in the absence of any submission on these matters, it is right that I ......

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