Re Rhondda Waste Disposal Company Ltd ((in Administration))

JurisdictionEngland & Wales
Judgment Date10 February 2000
Date10 February 2000
CourtCourt of Appeal (Civil Division)
In re Rhondda Waste Disposal Co Ltd. (in Administration)

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

Insolvent company can be prosecuted

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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  • Re Euro Bank Corporation
    • Cayman Islands
    • Grand Court (Cayman Islands)
    • 4 April 2001
    ...Eldermire, 2000 CILR 97; on appeal, sub nom. Att. Gen. v. Eldermire, 2000 N–10, considered. (19) Rhondda Waste Disposal Ltd., In reELR, [2001] Ch. 57; sub nom.Environment Agency v. Clark (Admor. of Rhondda Waste Disposal Ltd.), [2000] BCC 653, dicta of Scott Baker J. applied. (20) Tapper v.......
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    • Court of Appeal (Cayman Islands)
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    ...unreported, followed. (8) R. v. Dickson, [1991] BCC 719; (1991), 94 Cr. App. R. 7, followed. (9) Rhondda Waste Disposal Ltd., In reELR, [2001] Ch. 57; sub nom. Environment Agency v. Clark (Admor. of Rhondda Waste Disposal Ltd.), [2000] BCC 653, followed. Legislation construed: Companies Law......
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    ...B1 to the Act, including: (1) Criminal proceedings – see R v Dickson [1991] BCC 719 for s.130(2); and Re Rhondda Waste Disposal Ltd [2001] Ch 57 for s.11(3)(d); (2) Proceedings brought by foreign public prosecutors — see Re Arm Asset Backed Securities SA (No. 2) [2014] EWHC 1097; (3) Proce......
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2 books & journal articles
  • Table of Cases
    • United Kingdom
    • Wildy Simmonds & Hill How Judges Decide Cases: Reading, Writing and Analysing Judgments. 2nd Edition Contents
    • 29 August 2018
    ...Ltd v Hansen-Tangen; Hansen-Tangen v Sanko Steamship Co [1976] 3 All ER 570, HL 114 Rhondda Waste Disposal Ltd, Re [2000] EWCA Civ 38, [2001] Ch 57, [2000] 3 WLR 1304, [2000] BCC 653, CA 191 Rose v Ford [1937] AC 826, [1937] 3 All ER 359, (1937) 58 Ll L Rep 213, HL 158–159 Rothwell v Cavers......
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    • United Kingdom
    • Wildy Simmonds & Hill How Judges Decide Cases: Reading, Writing and Analysing Judgments. 2nd Edition Contents
    • 29 August 2018
    ...A Goodman, Effective Written Advocacy – A Guide for Practitioners (Wildy, Simmonds and Hill, London, 2nd edn, 2011). 5 [2000] EWCA Civ 38, [2001] Ch 57 CA at [42]–[43]. 192 How Judges Decide Cases: Reading, Writing and Analysing Judgments Equally, the trial judge’s analysis of law may be ca......
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