The Insolvency Act moratorium—Cook v Mortgage Debenture Ltd

The Insolvency Act moratorium—Cook v Mortgage Debenture Ltd

In the recent case of Cook v Mortgage Debenture Limited the Court of Appeal discussed the scope of moratorium provisions in Schedule B1 to the Insolvency Act 1986 (IA 1986). Sebastian Clegg, barrister at Deans Court Chambers, who represented the respondent in this appeal, considers the issues before the court and how this decision informs our understanding of the IA 1986 moratorium.

Original news

Cook v Mortgage Debenture Ltd [2016] EWCA Civ 103, [2016] All ER (D) 247 (Feb)

The Court of Appeal, Civil Division, upheld an earlier decision allowing Mr Cook to be joined as a party to proceedings. The judgment considered the construction of the provisions for a moratorium in connection with the administration of a company contained in IA 1986, Sch B1, para 43(6).

What was the background to the appeal?

The underlying proceedings concerned proceedings brought in respect of a loan. Mortgage Debenture Limited (MDL) brought a claim against the defendants alleging certain wrongdoings in relation to the loan. Mr Cook had been involved in advising the defendants at the time of the alleged wrongdoings and his firm had been threatened with legal action by a third party should MDL claim’s succeed. To protect his firm’s position, Mr Cook applied to be joined to proceedings which failed at first instance.

Just before the hearing of thatappeal, MDL issued a notice of intention to enter administration and IA 1986, Sch B1, para 43(6) was engaged. HHJ Waksman QC decided thatMr Cook’s appeal was not covered by the moratorium provided by IA 1986, Sch B1, para 43(6), the appeal was successful and Mr Cook was joined into the proceedings. MDL obtained permission from Lewison LJ to appeal the decision thatMr Cook’s appeal was not covered by the moratorium.

What were the legal issues the Court of Appeal had to decide?

The Court of Appeal had to

Subscription Form

Related Articles:
Latest Articles:

Already a subscriber? Login
RELX (UK) Limited, trading as LexisNexis, and our LexisNexis Legal & Professional group companies will contact you to confirm your email address. You can manage your communication preferences via our Preference Centre. You can learn more about how we handle your personal data and your rights by reviewing our  Privacy Policy.

Access this article and thousands of others like it free by subscribing to our blog.

Read full article

Already a subscriber? Login