Source: All England Reporter
Publisher Citation: [2016] All ER (D) 07 (Aug)
Neutral Citation: [2016] EWHC 1888 (Ch)
Court: Chancery Division

Jeremy Cousins QC sitting as a deputy judge of the High Court

Representation Aileen McErlean (instructed by Ronaldsons LLP) for C.
  Joseph Curl (instructed by DLA Piper UK LLP) for Dunbar.
Judgment Dates: 29 July 2016


Costs - Bankruptcy order - Appeal - Appropriate order for costs following debtor's unsuccessful appeal against bankruptcy order - Claimant debtor unsuccessfully appealing against bankruptcy order - Whether claimant to pay defendant petitioning creditor's costs personally - Whether costs of appeal to be paid as expense of bankruptcy or as provable debt - CPR 44 - Insolvency Rules 1986, , .

The Case

Costs Bankruptcy order. The Chancery Division ruled that it was permissible to order that the claimant debtor (the debtor), who had unsuccessfully appealed against a bankruptcy order, had to pay the defendant petitioning creditor's costs. Rule 12.2 of the Insolvency Rules 1986, , did not provide that recovery in accordance with that rule should be the only means by which costs should be recovered. The petitioner had invited the court to make an order within its power under r 7.51A of the Rules and CPR 44 that costs of the appeal should fall on the debtor. The debtor had made himself subject to that regime by appealing. The costs of the appeal did not constitute an expense of the bankruptcy or a provable debt. Accordingly, the debtor was ordered to pay the costs of his unsuccessful appeal. The court held that, to the extent that the costs were not paid by the debtor, they might be treated as an expense of the bankruptcy.

Practice Areas

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