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Insolvency Act 1986, s 234 cannot compel vacant possession from trespassers; administrators must proceed under CPR 55 – Maher v Investalet (England and Wales)

Published on: 15 December 2025

Published by a LexisNexis Restructuring & Insolvency expert
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Article summary

Section 234 of the Insolvency Act 1986 stops short of trespassers (Maher & Another v Investalet Ltd)

Maher and Another v Investalet Ltd [2025] EWHC 3133 (Ch)

What are the practical implications of this case?

The ruling serves as a firm reminder that IA 1986, s 234 functions as a procedural device, not a catch‑all shortcut to vacant possession. It authorises an office‑holder to require delivery up of “property of the company” found in third-party hands, but it does not enhance the company’s substantive entitlements.

In practice, office‑holders must differentiate between two situations:

  • Occupiers whose rights flow from the company (for example, as tenant or licensee) and who hold something that can accurately be characterised as the company’s property within their possession, custody or control; and
  • Occupiers who are, in truth, trespassers with a possessory stance that is weaker than the company’s title once any earlier tenancies or licences have ended.

In the first scenario, IA 1986, s 234 may remain available. In the second, the proper route is a standard CPR 55 possession claim brought in the company’s name, not an IA 1986, s 234 application...

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