Ross and another (as joint administrators of NJM Clothing Ltd) v Fashion Design Solutions Ltd and another company

Insolvency – Appointment of administrators. The language of the Insolvency Act 1986 required that the appointment of administrators precede, even if only momentarily, the filing of the notice of appointment. Further, pursuant to r 3.24 of the Insolvency Rules 2016, SI 2016/1024, at the time the notice of appointment was filed, the appointment had to have been made. The Chancery Division so ruled on an application by the purported joint administrators of a company (the applicants), under para 12(1)(b) of Sch B1 to IA 1986, concerning the validity of their appointment. The court held that the proper order to be made, in all the circumstances, was to declare that the applicants were in office as administrators of the company and would continue to be so, and that no prior act of theirs in the administration had been invalidated by reason only of a defect in their appointment.

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