Vol 22 (2025) - Issue 2

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Asertis Limited & Anor v Melhuish & Ors [2024] EWHC 2819 (Ch)

Synopsis
The English High Court (the 'Court') has held that a liquidator could disclose documents obtained under the compulsion powers in section 236 of the Insolvency Act 1986 ('section 236') to the assignee of a cause of action from the liquidation.
The Court held that: – while an assignee who has purchased a claim from a liquidator does not 'step into the shoes' of the liquidator for all purposes, it was consistent with the public policy underlying the ability of office holders to assign claims under section 246ZD of the Insolvency Act 1986 ('section 246ZD') for the assignee to access documents obtained by the liquidator in the exercise of section 236 powers; and – information and documents obtained by a liquidator under section 236 remain subject to a qualified duty of confidentiality, but practical steps could be taken on a case-by-case basis to appropriately address confidentiality issues – here, the judge ordered documents be redacted.
The Court noted that in each case it will be for the office-holder to decide whether to seek the court's permission to disclose to an assignee information or documents obtained under section 236 and for the assignee to decide whether permission is required to use these documents in pursuing any assigned claims.