Jurisdiction(s):
United Kingdom

Non‑co‑operation and passport orders in insolvency: High Court extends restraint in ongoing bankruptcy but not liquidation, applying s 37 Supreme Court Act 1981 and Pugachev (England and Wales)

Published on: 28 August 2024

Published by a LexisNexis Restructuring & Insolvency expert

Legal News

Article summary

Umbrella Care Ltd (in liquidation) v Raja; Brittain and another v Raja (a bankrupt) [2024] EWHC 1973 (Ch)

What are the practical implications of this case?

Insolvency practitioners, acting in varied capacities—here as liquidator of a collapsed company and as trustee in bankruptcy of the director who committed fraud on HMRC via that company—regularly encounter serious non-cooperation. Where the obstruction is acute and there is a genuine risk the respondent may abscond and not return, the court can:

Order the respondent’s arrest
Impose restrictions preventing departure from the jurisdiction
Direct that the respondent’s passport be held by the applicant’s solicitors until issues are concluded

This delivers a clear warning to those obliged to assist IPs and obey court orders—engage fully or risk losing the ability to travel overseas. However, the character and persistence of the non-cooperation are decisive. If there is no live court process that a passport order would genuinely support, this most stringent remedy is unlikely to be available. By contrast, where an insolvency process, such as bankruptcy, is ongoing and may require the bankrupt to remain available within the jurisdiction, then 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

Using the Judicial College Guidelines to assess general damages in personal injury claims

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

Tomlin orders in England and Wales: CPR guidance on drafting, confidentiality, approval, variation, enforcement, limitation, CCA issues, court-specific requirements, sample wording and precedents

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...

Precedent: Deed of Surrender of Lease with Optional Premium, Settlement and Release, Landlord, Mortgagee and Guarantor Consents, Reimbursement and HM Land Registry Provisions (England and Wales)

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 ...

Precedent Statutory Declaration: Standard Wording under the Statutory Declarations Act 1835

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 ]...