Section 234 of the Insolvency Act 1986 stops short of trespassers (Maher & Another v Investalet Ltd)
Restructuring & Insolvency analysis: The High Court rejected an application by the joint administrators of Pocket Renting Ltd (the Company) under section 234 of the Insolvency Act 1986 (IA 1986) for vacant possession of five residential properties owned by the Company. The court held that IA 1986, s 234 cannot be used to compel persons in occupation as mere trespassers to give up possession, because a trespasser’s possessory title is not the kind of ‘property’ that can be ‘paid, delivered, conveyed, surrendered or transferred’ under the section. While the court considered that the Company would be entitled to possession in ordinary CPR 55 proceedings, the chosen route under IA 1986, s 234 was the wrong one. The decision applies and develops the Court of Appeal’s reasoning in Carvill-Biggs v Reading and is significant for office-holders dealing with intermediate landlords and unauthorised occupiers. Written by Camilla Whitehouse, barrister and head of chambers, Gainsborough Law.