- Third party costs orders and the ‘real party’ on an application for public examination (Official Receiver v Deuss)
- What are the practical implications of this case?
- What was the background?
- What did the court decide?
- Case details
Restructuring & Insolvency analysis: This is the first reported decision on costs relating to an application under section 133 of the Insolvency Act 1986 (IA 1986). Mr Deuss successfully resisted an order for public examination on an application brought by the official receiver (OR) at the request of the majority of the creditors of Transworld Payments Solutions UK Ltd (TWPS). During the course of the proceedings, Mr Hunt, as liquidator of TWPS, was directed to and did provide evidence as to topics that might be the subject of questions under IA 1986, s 133. Following the dismissal of the application, Mr Deuss sought a third party costs order against Mr Hunt personally on the basis that the request was made to gather information for the purposes of litigation brought by TWPS, and from which Mr Hunt stood to benefit as its liquidator. The court held that Mr Hunt did not fund or control the litigation and was not the ‘real party’. Mr Deuss’ application was dismissed. Written by Caley Wright, barrister at Maitland Chambers.
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