Re Burnden Group Ltd; Fielding and another v Hunt (acting as Liquidator of the Burnden Group Ltd)

Company – Winding up. The Chancery Division ruled that a liquidator of a company was not personally liable to pay the costs of the applicants' successful appeal, under r 4.83 of the Insolvency Rules 1986, SI 1986/1925, against the rejection of their proof of debt in respect of a company. The court held that a finding that a liquidator had been acting for his personal advantage in relation to an appeal against a proof of debt ought to lead to the liquidator being ordered personally liable to pay the costs of unsuccessfully resisting the appeal, but that something more than merely unsuccessfully resisting an appeal was needed for the court to make an order for personal liability. The court found that there was no question of the liquidator having acted for his personal advantage in the present case and that the appropriate order, taking account of the fact that the applicants' conduct had caused an increase in the overall length and cost of the appeal, was that 80% of the applicants' costs of the appeal should be regarded as expenses of the liquidation.

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