Period of validity—striking out an insolvency application (Dumville and another (as joint liquidators of HS Works Ltd) v Irwin of Irwin & Co)

Period of validity—striking out an insolvency application (Dumville and another (as joint liquidators of HS Works Ltd) v Irwin of Irwin & Co)

Daniel Lewis, barrister and counsel for the respondent, at 3 Hare Court sums up the court’s approach to strike out an insolvency claim on the basis of period of validity.

Dumville and another (as joint liquidators of HS Works Ltd) v Irwin of Irwin & Co (trading as Financial Dynamics Consultants Ltd) [2018] EWHC 1405 (Ch), [2018] All ER (D) 169 (Jun)

What are the practical implications of this case?

A significant body of case law has developed around CPR 6 and CPR 7 and the technicalities as to service and validity of claim forms, which must be served within four months of issue. There is a dearth of similar authority relating to insolvency proceedings and, in particular, to what extent the CPR provisions relating to claim forms apply to the application notices by which they are initiated.

This case is significant in considering the time limits which might render insolvency proceedings invalid and how the CPR should be applied to insolvency proceedings more generally. The decision relating to how a jurisdictional challenge should be approached in insolvency proceedings is relevant not just to the question of the period of validity of the application notice, but also to the more common question of disputing territorial jurisdiction.

What was the background?

The claim was for breach of duty against the former administrator of the company (now in liquidation), although the judgment is of application to any claim commenced by issue of an insolvency application. The insolvency application was issued but was not served as the parties were still involved in pre-acti

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About the author:

Stephen qualified as a solicitor in 2005 and joined the Restructuring and Insolvency team at Lexis®PSL in September 2014 from Shoosmiths LLP, where he was a senior associate in the restructuring and insolvency team.

Primarily focused on contentious and advisory corporate and personal insolvency work, Stephen’s experience includes acting for office-holders on a wide range of issues, including appointments, investigations and the recovery and realisation of assets (including antecedent transaction claims), and for creditors in respect of the impact on them of the insolvency of debtors and counterparties.