Vol 18 (2021) - Issue 3

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In the matter of NMUL Realisations Limited and in the matter of the Insolvency Act 1986 [2021] EWHC 94 (Ch)

Synopsis
On application by the administrators of NMUL Realisations Limited (in administration) (the 'Administrators' and the 'Company' respectively) for directions, the Court was asked to determine whether the appointment of the Administrators was void ab initio due to a failure to notify the holder of a prior qualifying floating charge pursuant to paragraph 15 of Schedule B1 of the Insolvency Act 1986.
The Court held that the defect was not fundamental and was capable of remedy by an order of the Court made under Rule 12.64 of the Insolvency (England and Wales) Rules 2016, since no substantial injustice had been caused. As such, notwithstanding the procedural irregularity, the appointment was valid and was not void ab initio.
It was relevant to the assessment of substantial injustice that no interested party objected to the relief sought, and the administration had ultimately been successful and had proved to be for the benefit of all classes of creditor.