Re Rhondda Waste Disposal Company Ltd ((in Administration))
| Jurisdiction | England & Wales |
| Judgment Date | 10 February 2000 |
| Date | 10 February 2000 |
| Court | Court of Appeal (Civil Division) |
Before Lord Justice Henry, Lord Justice Robert Walker and Mr Justice Scott Baker
Court Of Appeal
Insolvency - criminal proceedings against company in administration - leave required
The provision in section 10 of the Insolvency Act 1986 that proceedings could not be brought without leave against a company in administration, applied to criminal as well as civil proceedings.
Administration was intended to provide a breathing space while the company sought to achieve certain statutory objectives. That purpose might be hindered if it could be prosecuted without restraint. In the instant case, however, the judge had been wrong to refuse leave for the proposed prosecution.
The Court of Appeal so held dismissing an appeal by the Environment Agency from a decision of Judge Moseley, QC, sitting as a Chancery Division judge (The Times August 13, 1999) whereby he held that the agency required leave under section 10 of the 1986 Act to commence criminal proceedings against Rhondda Waste Disposal Co Ltd (in administration), and allowing an appeal by the agency from Judge Moseley's later refusal of leave to bring the proceedings.
Mr Stephen Hockman, QC and Mr Stephen Moverley-Smith for the Environment Agency; Mr Stephen Davies for the administrator.
MR JUSTICE SCOTT BAKER said the case involved a landfill site at Nant-y-Gwyddon, run by Rhondda Waste Disposal Co Ltd, which was wholly owned by Rhondda Cynon Taff County Council.
The site had obnoxious odours and there had been local protests. The Environment Agency had served notices on the company requiring it to cap the existing tip and monitor emissions but the capping had not been carried out, the company being in trading difficulties.
Technical difficulties had increased the cost of the required works and pushed it into administration.
The question was whether criminal proceedings brought by the agency after the petition for the administration order but two days before the order was made were within section 10(1)(c).
An administration order permitted for clearly and narrowly defined purposes only and there was a good reason why the legislation should prevent steps being taken which might thwart those purposes.
The words of the section on their natural construction were entirely apt to include criminal proceedings. There was no authority for saying there was anything inherently wrong in the Chancery Division...
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