JCAM Commercial Real Estate Property XV Ltd v Davis Haulage Limited
31 Mar 2016
Jonathan Lopian represented the applicant creditor in its challenge against the filing in court by the respondent company of a notice of intention to appoint an administrator under paragraphs 26 and 27 of Schedule B1 to the Insolvency Act 1986 as an abuse of process. The respondent company had served and filed four back to back notices, the last of which was filed the day after it had filed a CVA proposal in court and which would expire before the date of the meeting of creditors which had been summoned to consider the proposal. As a matter of statutory construction, the court held that the phrase “proposes to make an appointment” in paragraph 26 of the schedule did not preclude the filing of such a notice, even though the appointment of an administrator was a second best option that would only be pursued if the CVA proposal was rejected.
This decision, with the permission of the judge, is currently the subject of an appeal by the applicant to the Court of Appeal.
Instructing solicitor was Forsters