Source: All England Reporter
Publisher Citation: [2008] All ER (D) 200 (Mar)
Court: Chancery Division
Judge:

Thomas Ivory QC sitting as a deputy judge of the High Court
Representation Martin Collier (instructed by Cornelius Associates Ltd Solicitors) for the appellant.
  Thomas Robinson (instructed by Penman Johnson) for the respondent.
Judgment Dates: 14 March 2008

Catchwords

Insolvency - Statutory demand - Setting aside statutory demand - Dismissal of application to set aside statutory demand - Respondent's husband and appellant entering into loan agreement with bank as partners in firm of solicitors - Respondent paying debt to bank subsequent to partnership becoming insolvent and appellant being made subject to IVA - Payment including over £25,000 in costs incurred post-IVA - Respondent serving statutory demand on appellant in exercise of rights of subrogation - Deputy district judge refusing to set aside statutory demand on basis respondent not bound by IVA - Appellant appealing - Whether costs incurred amounting to post-IVA debts entitling respondent to serve statutory demand in any event - Insolvency Rules 1986, , r 5.21(2)(b).

The Case

Where the appellant appealed against a decision refusing to set aside a statutory demand by the respondent, who was exercising her rights of subrogation through the bank, having paid a debt to it arising out of a loan agreement entered into by her husband and, inter alia, the appellant, as partners in a firm of solicitors which subsequently became insolvent, the appeal would be dismissed. In the circumstances, there was no ground for interfering with the district judge's decision that, even if the respondent had been bound by an individual voluntary arrangement (IVA) entered into by the appellant, the payment by the respondent had included a post-IVA debt exceeding 750, entitling the respondent to serve a statutory demand in any event.

Practice Areas

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