Source: All England Reporter
Publisher Citation: [2002] All ER (D) 52 (Jul)
Court: Chancery Division
Judge:

Hart J

Representation Gabriel Moss QC (instructed by Benedict Mackenzie) for the applicant.
  John Kimbell (instructed by DLA) for the respondent.
Judgment Dates: 3 July 2002

Catchwords

Company - Administration order - Effect - Secured creditor appointing receivers in relation to charge over applicant company's aircraft - Applicant subsequently appointing administrators - Respondent claiming lien over aircraft for unpaid maintenance work - Applicant applying for declaration that respondent having no right to detain aircraft - Whether respondent entitled to enforce lien over aircraft without leave of court or consent of administrator - Whether court should grant leave - s 11(3)(c).

The Case

The applicant company's application for a declaration that the respondent had no right to enforce its lien over the applicant's aircraft was granted on the grounds that pursuant to s11(3) of the the respondent company could not enforce its security without the leave of the court, and in the instant case the court would not give such leave where its effect would be to defeat the purposes for which the administration order was made, and make the respondent a secured creditor above other unsecured creditors.

Practice Areas

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