*Sands v Layne and another

Bankruptcy and Insolvency – Bankruptcy. The first defendant owed a debt to the second defendant local authority. By a consent order, a judge set aside a bankruptcy order made against the first defendant on the basis that security had been offered by way of a charge on his home. The applicant trustee in bankruptcy applied for an order that the consent order should be rescinded, pursuant to s 375 of the Insolvency Act 1986, relying on alleged debts owed to unsecured creditors, which had not been brought to the court's attention. A district judge ruled that he had no jurisdiction to order rescission of an order made by the High Court and the matter was transferred to the Chancery Division. That court, dismissing the application, held that, applying Appleyard v Wewelwala[2013] 1 All ER 1383, s 375(1) of the Act did not empower review of an order made by a judge of the High Court on appeal under s 375(2) of the Act. In so far as other unsecured creditors might be affected by the provision of the security to a petitioner, it was neither necessary nor appropriate for their interests to be addressed in the context of the issue of whether, where security was offered and rejected, a bankruptcy order should be made or refused.

Category: