Kuits successful appeal involving the interpretation of Section 265 of the Insolvency Act 1986. - Kuits Solicitors Manchester
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Kuits successful appeal involving the interpretation of Section 265 of the Insolvency Act 1986.

Kuits successful appeal involving the interpretation of Section 265 of the Insolvency Act 1986.

31 Oct 2019

Manchester commercial law firm Kuits has been successful in an appeal involving the interpretation of Section 265 of the Insolvency Act 1986.

Specialist insolvency solicitor for Kuits, Vanessa Stuart, acted on behalf of the Appellant, instructing barrister Eleanor Temple of Kings Chambers.

In the case of David George Charlton v (1) Funding Circle Trustee Limited & (2) Joanne Wright [2019] EWHC 2701 (Ch), the Honourable Mr Justice Barling allowed the appeal, set aside the bankruptcy order and dismissed the bankruptcy petition.

The issue considered by the court was whether, for the purposes of Section 265 of the Insolvency Act, a person has carried on a business by reason of engaging in share sale discussions, particularly in the context of a corporate rescue attempt (as compared to the position in Gate Gourmet Luxembourg IV Sarl and another v Morby [2015] EWHC 1203 (Ch), where a sale transaction had been concluded).

Mr Justice Barling, decided that Mr Charlton had not carried on a business within England and Wales in the relevant period and that the jurisdictional test for obtaining a bankruptcy order where a person is domiciled and resident out of the jurisdiction had not been met at the time of the bankruptcy order.

The judgment also addresses the evidential weight of statements made by directors in documents filed at Companies House when set against direct witness evidence of the individual director to the contrary (considering the decision of Chief Master Marsh in Key Homes Bradford Limited and Ors v Patel [2014] EWHC B1 (Ch)).

A copy of the judgment can be viewed at the following link: [2019] EWHC 2701 (Ch).

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