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A Company (Number CR-2024-BHM-000012), Re

[2024] EWCA Civ 1436
Imagine sending a letter to the court to start a company bankruptcy case. The court says the letter isn't officially 'presented' until you pay a deposit. In this case, the company tried to stop the bankruptcy after sending the letter but before paying. The judge originally agreed, then changed his mind because the deposit was paid and the bankruptcy was officially started. The appeal court agreed with the judge's final decision – the bankruptcy case was valid. This means paying the deposit is crucial in starting the process; otherwise, the case isn't actually underway until the deposit is received.

Key Facts

  • A winding-up petition was submitted electronically to the BPC in Manchester on January 12, 2024, before the Official Receiver's deposit was paid.
  • An injunction application was made to the BPC in Birmingham on January 3, 2024, to restrain the winding-up petition.
  • The Birmingham court made an initial order on January 17, 2024, restraining the issuance of the petition.
  • The Official Receiver's deposit was paid on January 18, 2024, after which the Manchester court issued the petition.
  • The Birmingham court subsequently rescinded its initial order.
  • The appeal concerns the timing of the presentation of a winding-up petition in the context of electronic filing and the payment of the Official Receiver's deposit.

Legal Principles

A winding-up petition is presented only when it is delivered to the court and all statutory requirements, including payment of the Official Receiver's deposit, are met.

Insolvency Act 1986, Insolvency (England and Wales) Rules 2016, Practice Direction on Insolvency Proceedings

The court's power to review its orders under Rule 12.59 of the 2016 Rules.

Insolvency (England and Wales) Rules 2016, Rule 12.59

An 'updating construction' should be applied to interpret the concept of 'presentation' in the 1986 Act to accommodate changes in court procedure and technological developments.

Bennion, Bailey and Norbury on Statutory Interpretation, 8th ed. at sections 14.1 and 14.2

Outcomes

The appeal was dismissed.

The court held that the petition was presented when the deposit was paid, not when it was electronically submitted. While the initial injunction was technically valid, the subsequent events rendered it ineffective. The judge correctly rescinded his order under Rule 12.59.

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