Re Frontsouth (Witham) Ltd ((in Administration))
| Jurisdiction | England & Wales |
| Judgment Date | 30 June 2011 |
| Date | 30 June 2011 |
| Court | Chancery Division |
Chancery Division
Before Mr Justice Henderson
Any practice of relying on rule 7.55 of the Insolvency Rules (SI 1986 No 1925) to waive technical defects in the out-of-court appointment of administrators had to cease; such change could only be brought about by legislation.
Mr Justice Henderson so held in the Chancery Division, on June 30, 2011, when considering applications by Bruce Alexander Mackay and Matthew Robert Haw, the administrators of Frontsouth (Witham) Ltd and its wholly owned subsidiary Bridge Hospital (Witham) Ltd, and questions arising concerning the e xtent of the power of the court under rule 7.55 to waive a defect in the appointment of administrators. HIS LORDSHIP said the parallel between service of a statutory demand in the context of section 69(1) of the Solicitors Act 1974 and an out-of-court appointment of administrators under Schedule B1 to the Insolvency Act 1986 was not a close one.
The reason given by Mr Justice Hart in In re G-Tech Construction Ltd ([2007] BPIR 1275) for holding that in the case of an invalid appointment where a statutory prerequisite had not been observed, namely, that there were no insolvency proceedings within the...
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