Brake and another (Respondents) v Chedington Court Estate Ltd (Appellant)
Case ID: 2021/0010
Case summary
Issue
Does a bankrupt have standing under section 303(1) of the Insolvency Act 1986 to challenge transactions entered by their trustee in bankruptcy in situations where the relief sought would have no impact on their position within the bankruptcy?
Facts
The Brakes were made bankrupt in 2015. Their trustee in bankruptcy entered into a number of transactions to dispose of the bankrupt estate. The Brakes sought to challenge the propriety of these transactions under section 303(1) Insolvency Act 1986, which provides for the trustee’s exercise of discretion to be challenged on the application of “dissatisfied” persons. At the Court of Appeal, it was found that the Brakes had sufficient standing to make an application under section 303(1) as bankrupts in their own capacity on the basis that they had a direct interest in the relief sought.
The Chedington Court Estate Ltd now appeals to the Supreme Court on the ground that bankrupts cannot have standing to interfere in the conduct of their bankruptcies where the relief sought would have no impact on their position within the bankruptcy and/or where other relief is available to them in the general law.
Judgment appealed
Parties
Appellant(s)
Chedington Court Estate Ltd
Respondent(s)
(1) Nihal Mohammed Kamal Brake
(2) Andrew Young Brake
Appeal
Justices
Lord Briggs, Lord Hamblen, Lord Leggatt, Lady Rose, Lord Richards
Hearing start date
1 November 2022
Hearing finish date
1 November 2022
| Watch hearing | ||
|---|---|---|
| 1 November 2022 | Morning session | Afternoon session |
Future Judgment Update
Please note that appeal in the matter of Brake and another (Respondents) v Chedington Court Estate Ltd (Appellant) has been heard by the Supreme Court and is currently awaiting judgment.
As soon as the judgment hand-down date is confirmed, it will be published on the Future judgments page of this website. As a very broad indication, judgments tend to follow between three to nine months after the conclusion of the appeal hearing, although in some cases it may be earlier than that. Information about judgment hand-downs is usually announced one week in advance. We are unable to give any indication of the likely hand-down date for judgments not listed on the Future judgments page.