Scotland—challenging a liquidator’s decision—the proper approach of the court (Re West Larkin Limited (in liquidation) (No 2))

Table of contents

• What was the background?
• What did the court decide?
• What are the practical implications of this case?
• Case details

Article summary

Restructuring & Insolvency analysis: A recent decision of the Court of Session has considered the proper approach of the court to an application under section 167(3) of the Insolvency Act 1986 (IA 1986) which sought to have the liquidator directed by the court to bring a challenge to an agricultural tenancy notice. In refusing the application, the court held that the liquidator’s decision not to challenge the notice was not unreasonable having regard to the circumstances of the case. This analysis examines the court’s decision and the factors and considerations which should be taken into account by a liquidator in reaching a decision as to whether to bring a challenge or raise litigation. Written by Stuart Clubb, partner and solicitor advocate, at Shoosmiths.