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Jurisdiction(s):
United Kingdom

Re Eversholt Rail (365) Ltd: ss 235–236 IA 1986 application dismissed—requests must be specific and evidenced; blanket disclosure and privileged material off-limits (Chancery Division, England and Wales)

Published on: 28 October 2024

Published by a LexisNexis Restructuring & Insolvency expert
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Article summary

Webb and another (in their capacity as joint liquidators of Eversholt Rail (365) Ltd (in liquidation)) v Eversholt Rail Ltd and another company [2024] EWHC 2217 (Ch)

What are the practical implications of this case?

This case serves as a reminder to insolvency practitioners that orders under IA 1986, s 235 and IA 1986, s 236 are not automatic; a cogent justification is needed explaining why specified documents are reasonably required. Requests should be tightly focused in both timeframe and in the categories or classes of documents sought. The judge criticised not only the lack of specificity in the evidence, but also the failure to explain that lack. As the court has a broad discretion and will weigh a range of considerations, a request that is relatively unfocused may still be granted if there is a satisfactory reason it cannot be more precise, for example a complete lack of co-operation from the other side.

What was the background?

This application was made in relation to Eversholt Rail (365) Ltd (the Company)...

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