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(Patley Wood Farm LLP v Kicks)

The applicants, who were creditors of Mr and Mrs Brake (the Brakes), applied for an order under section 303(1) of the Insolvency Act 1986 (IA 1986) directing the trustees (the Trustees) of the Brakes’ bankrupt estate (the Estate) to apply to be joined into and take steps in relation to proceedings concerning a property called West Axnoller Cottage (the Cottage) which was an asset of the Estate.

The applicants objected to the Brakes potentially being able to regain possession of the Cottage and wanted the Trustees – who had been reluctant to get involved, to take steps to intervene in proceedings pending in the Court of Appeal between the Brakes and The Chedington Court Estate Ltd (Chedington) in which the Brakes applied for possession of the Cottage (the Eviction Proceedings).

The court granted the application and disapproved of the Trustees lack of action and unwillingness to involve themselves in the Eviction Proceedings, the subject of which was clearly relevant to the Estate and found their decision making in this regard to be perverse. 

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This article was first published on Lexis®PSL on 4 January 2022.

Authored by Ben Rutledge, associate at Keidan Harrison LLP.