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Disclosure of Proofs; Liquidator Wins Appeal

Disclosure of Proofs; Liquidator Wins Appeal

Mr Justice Norris gave judgment today in Burnden Group Holdings Limited-v-Stephen Hunt (Liquidator of Burnden Holdings (UK) Limited), on an appeal heard by him as Vice Chancellor of the County Palatine of Lancaster.  The matter arose out of the grant of relief by a District Judge sitting in Liverpool to a paid up shareholder seeking an order for sight of proofs of debt in the course of a liquidation.  The application was related to the dispute which formed the basis for the Supreme Court’s recent consideration of limitation in claims for alleged breach of duty by directors, Burnden Holdings (UK) Limited-v-Fielding [2018] UKSC 14.  Glenn Campbell, who did not appear in the court below, was instructed by Louise Bell of Enyo Law, London EC4 for the Liquidator, opposed by leading and junior counsel from London.  After considering the meaning of the phrase “contributory” in the context of the Insolvency Act and Rules, and analysing the test articulated by the Privy Council in Delloite and Touche-v-Johnson [1999] 1 WLR., 1605 for determining whether and on what terms to grant such relief against liquidators, Norris.J. allowed the appeal.

The judgment can be seen at:-

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