Prompt Motor Ltd v HSBC Bank plc

Order – Application to set aside order. The Chancery Division dismissed the claimant company's application to set aside an order (the order) made by a judge in earlier proceedings. By that order, the judge had refused to grant the company permission to appeal against an order granting summary judgment in favour of the defendant, HSBC Bank plc (the bank). The company had borrowed £1m from the bank, secured by a legal charge over its premises, and a debenture, and the bank had appointed administrative receivers, following the company's failure to pay a demand for sums outstanding on its overdrawn account. The court ruled that it had no jurisdiction, under CPR 3.1(7), to set aside the order in respect of what was a very stale claim. It considered that, even if there was jurisdiction, it would not have exercised its discretion to set aside the order because there had been nothing to affect the validity of the bank's letter of demand, and, further, that there was no prohibition, in law, on persons being appointed as administrative receivers who had been involved in working for the bank on the affairs of the company from an earlier date, or who had, if that had been the case, trespassed on the company's premises before that appointment.

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