Powered by Lexis+®
Jurisdiction(s):
United Kingdom

No statutory trust or limitation standstill on entry into administration; time stops on creditors' voluntary liquidation: Contract Natural Gas v ZOG Energy [2025] EWHC 86 (Ch) (England and Wales)

Published on: 05 March 2025

Published by a LexisNexis Restructuring & Insolvency expert
Legal News
imgtext
Article summary

Written by Aziz Abdul, legal director, and Brian Rostron, associate, at Addleshaw Goddard LLP. Contract Natural Gas Ltd (in liquidation) v ZOG Energy Ltd (in liquidation) [2025] EWHC 86 (Ch)

What are the practical implications of this case?

This decision is useful as it establishes, for the first time, how limitation applies to administrations begun after the Enterprise Act 2002. The court acknowledged that allowing time to continue after entry into administration may increase legal costs and complicate steps for creditors, who may feel compelled to issue protective claims to protect their positions. Nonetheless, those policy points were not compelling enough to support a statutory trust or to determine that time ceases to run. Reflecting the approach in Re Maxwell Fleet and Facilities Management Ltd [2001] 1 WLR 323, the court indicated that any gap in the law on the impact of an administration order on limitation is not for the courts to fill; it is for Parliament to resolve.

What was the background?

CNG, incorporated in 1994, was a UK energy utility, buying gas on a wholesale basis and reselling it...

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

Popular documents

When evaluating a general damages claim, the practitioner ought initially to refer to the Judicial College Guidelines (JCG)...

Read More Right Arrow

This Practice Note This Practice Note reviews mechanisms used in settling litigation. A Tomlin order consists of a consent order paired with a schedule. It operates to stay proceedings on terms that have been agreed. The provisions contained in the schedule may remain confidential. This Practice Note describes the scope of confidentiality attaching to the schedule and sets out how it differs from a standard consent order. Sample wording for a Tomlin order is included, alongside links to precedents, as well as guidance on court approval. It also addresses varying, setting aside and enforcing a Tomlin order, including the considerations the court will take into account when handling applications for each. Further guidance is provided on interpreting and applying the relevant provisions of the CPR; however, some courts and divisions impose very specific requirements for both drafting and approval, and for approaching the schedule and confidentiality issues. Accordingly, you must consider the particular rules and court guide provisions in the forum where your claim is proceeding when drawing up the Tomlin order...

Read More Right Arrow

Date [ date ] Parties [ name of Landlord ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Landlord) [ name of Tenant ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Tenant) [ [ name of Guarantor ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Guarantor) ] [ [ name of Mortgagee ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Mortgagee) ] Definitions Within this Deed, the terms below shall be interpreted as follows: [ Annual Rent • the annual sum reserved under the Lease; ] [ Insurance Rent • the Tenant’s share of the Landlord’s costs of insuring the Property (as set out in the Lease); ] Lease • the lease of the Property dated [ date ], entered into between (1) [ the Landlord OR [ name ...

Read More Right Arrow

I, [ name ], of [ address ], solemnly and sincerely state that: [ Matters to be verified, set out in numbered paragraphs ] I make this solemn statement in good conscience, believing it to be true, and pursuant to the provisions of the Statutory Declarations Act 1835. DECLARED at [ details ] this [ day ] day of [ month and year ] Before me ................................................................................ [ signature of the person before whom the declaration is made ] A [ commissioner for oaths OR [ solicitor OR [ insert other qualification ] ] authorised to administer oaths ]...

Read More Right Arrow