Bank Notes

P - Proof of debts

12/11/19

SHINNERS v LONDON TROCADERO (2015) LLP [2019] EWHC 2932 (Ch)

The court considered claims which are provable in insolvency (liabilities arising from obligations incurred before the commencement of liquidation/administration) [26], administration expenses (expenses incurred from obligations entered into by the office holder after the onset of the liquidation/administration) [33], the Lundy Granite principle (that claims arising from pre-liquidation/administration contracts may in certain circumstances be treated as an expense) [38], and the rule against double proof [68]. Lundy Granite can apply to non-provable claims but only applies where common sense and equity dictate that the particular liability should enjoy priority. A tenant’s obligation to top-up a rent deposit was a non-provable debt but was not within the Lundy Granite principle where the rent itself was an expense of the administration.

16/8/13

HEIS v ATTESTOR VALUE MASTER FUND LP [2013] EWHC 2556 (Ch)

Where client money was pooled in accordance with CASS 7 & 7A of the FSA Handbook rules on the administration of a broker company, client distributions from the pool reduced the contractual debt for which a client could prove in the administration. If the broker had failed to comply with CASS 7, the client could also have a claim for equitable compensation, but the rule against double proof would limit the extent to which a proof could also be made for such a claim to the amount by which it exceeded the sum for which the client could prove for the contractual debt.