Polly Peck International Plc, Re (Nos. 1, 2, 3, 4, 5)
Jurisdiction | England & Wales |
Judgment Date | 07 May 1998 |
Date | 07 May 1998 |
Court | Court of Appeal (Civil Division) |
Court of Appeal
Before Lord Justice Nourse, Lord Justice Potter and Lord Justice Mummery
Insolvency - remedial constructive trust could not be imposed on assets
Proceedings against an insolvent company based on allegations of wrongful occupation of property in the Turkish-occupied part of Cyprus did not disclose any seriously arguable case on the merits and leave to commence the action in accordance with section 11(3) of the Insolvency Act 1986 was not to be granted.
There was no prospect of the court imposing on the assets of the insolvent company, in administration in England, a "remedial constructive trust" so as to give applicants a proprietary interest.
The Court of Appeal so held in a reserved judgment allowing an appeal by the administrators of Polly Peck International plc, Mr R A Stone, Mr M A Jordan, Mr C Morris, Mr C J Barlow, and by Polly Peck International plc and Mr Ian Bond from the judgment of Mr Justice Rattee (The Times December 27, 1996; [1997] 2 BCLC 630) whereby he had granted the applicants, Marangos Hotel Co Ltd, Phasos Estates Ltd, Agricultural Products Co-operative Marketing Union (Sedigep) Ltd and Cyprus Ports Authority, leave to commence proceedings.
Mr Michael Crystal, QC, Mr William Trower and Mr Philippe Sands for the administrators; Miss Barbara Dohmann, QC, Mr Lawrence Collins, QC, solicitor, and Mr Thomas Beazley for the applicants.
LORD JUSTICE MUMMERY said that the applicants wished to commence proceedings against Polly Peck International plc, a holding company that
had been controlled by Mr Asil Nadir, a Turkish Cypriot, but which was massively insolvent and had been in administration since 1990.
PPI's administrators had refused to consent to the commencement of proceedings, contending that the draft statement of claim failed to disclose a seriously arguable case justiciable in the English courts.
It was common ground that leave to proceed should only be granted by the court under section 11(3) if it was satisfied that the claim disclosed a seriously arguable case on the merits as well as on the jurisdiction.
The proposed claims arose out of alleged wrongful occupation of the applicants' property in the Turkish-occupied part of Cyprus. It had not been disputed that the property had been expropriated.
The applicants contended that the property had been occupied and exploited without their authority by...
To continue reading
Request your trial-
Algosaibi Bros v Saad Invs
...[2008] EWHC 2613 (Comm), applied. (29) Philipps v. PhilippsELR(1878), 4 Q.B.D. 127, referred to. (30) Polly Peck Intl.PLC, No.2, Re, [1998] 3 All E.R. 812; [1998] 2 BCLC 185, distinguished. (31) Powell v. Thompson, [1991] 1 N.Z.L.R. 579, referred to. (32) Practice Direction (C.A.: Leave to ......
-
Safe Business Solutions Ltd ((in Liquidation)) v Malcolm Cohen and Another
...the one before the court today. The last observation regarding a seriously arguable case comes from the decision in Re Polly Peck International Plc (in Administration) (no 5) [1998] 3 All ER 812. In that case the Court of Appeal found that a claim based on a remedial constructive trust was ......
-
Re Pantmaenog Timber Company Ltd (pet all)
... ... As Vinelott J observed in Re Polly Peck International plc [1994] BCC 15 , 16A-B, the ... ' House in In re British & Commonwealth Holdings plc (Nos 1 & 2) [1993] AC 426 ... It will be rare for any ... ...
-
Harms Offshore AHT "Taurus" GmbH and Company KG and Another v Bloom and Others
...distinction between compulsory winding up and administration is demonstrated by the judgment of Mummery LJ in Re Polly Peck International plc (in administration) No. 4 [1998] 2 BCLC 185, 201. If the Court has a jurisdiction to protect the assets of a company that is being wound up by the C......
-
THE LAW WANTS TO BE FORMAL.
...(2013). (165) SeeFHR Eur. Ventures LLP v. Cedar Cap. Partners LLC [2014] UKSC 45, [43]; In re Polly Peck Int'l pic (No. 2) v. Stone [1998] 3 All ER 812 (AC) at 827; In reGoldcorp Exch. Ltd. [1994] 2 All ER 806 (PC) at 828; F[sigma]rtex Grp Ltd v Macintosh [1998] 3 NZLR 171 (CA) at 178-79 (N......
-
Table of Cases
...1 WLR 143 554 Pinewood Joinery v Starelm Properties Ltd [1994] BCC 569 560 Polly Peck International Plc (In Administration) (No 5), Re [1998] 3 All ER 812 127 Polly Peck International plc, Re [1991] BCC 503 145 Polly Peck International plc, Re [1993] BCC 890 563 Popart v Shoncchatra [1997] ......
-
Administration
...hand in Re Carter Commercial Developments Ltd [2002] BCC 803. 215 See e.g. Re Polly Peck International Plc (In Administration) (No 5) [1998] 3 All ER 812; Joinery Plus Ltd v Laing Ltd [2003] EWHC 3513 (TCC), [2003] BPIR 890 (a claim for repayment); and AES Barry Ltd v TXU Europe Energy Trad......
-
UNJUST ENRICHMENT, PROPRIETARY SUBROGATION AND UNSATISFACTORY EXPLANATIONS
...76FHR European Ventures LLP v Cedar Capital Partners LLC[2015] AC 250 at [47], per Lord Neuberger; Re Polly Peck International (No 2)[1998] 2 BCLC 185; [1998] 3 All ER 812; Westdeutsche Landesbank Girozentrale v Islington LBC[1996] AC 669 at 714–716, per Lord Browne-Wilkinson; El Ajou v Dol......