Source: All England Reporter
Publisher Citation: [2002] All ER (D) 26 (Nov)
Court: Chancery Division
Judge:

Etherton J

Representation David Marks (instructed by Davis Hanson) for the applicant.
  James Dingemans QC and Sarah Crowther (instructed by Butcher Burns) for the liquidator.
Judgment Dates: 4 November 2002

Catchwords

Companies - Insolvency - Liquidator - Admission of proof of judgment debt - Power of liquidator to look behind judgment.

The Case

The rationale for the principle that, in considering whether to accept a creditor's proof based on a judgment debt, the liquidator might in appropriate circumstances go behind the judgment to ensure that there was real indebtedness, was that the distribution of a company's assets amongst the company's legitimate creditors should not be diluted by the inclusion of unjustified creditors. In the instant case, the application could not be justified on the basis that its object was the prevention of such dilution.

Practice Areas

If you are a LexisLibrary subscriber you can read more about this case here.