High Court allows Moises Gertner’s appeal against bankruptcy order
The High Court has handed down judgment in the long-running bankruptcy proceedings against property tycoon Moises Gertner. Mr Justice Marcus Smith has set aside the bankruptcy order made last year by the Chief ICC Judge, ruling that Judge Briggs exercised his discretion on the basis of immaterial factors, and that the petition should be stayed so that Mr Gertner’s creditors can vote on a proposed IVA.
The case has attracted considerable attention in both the national press and in legal textbooks. Marcus Smith J’s judgment contains an interesting discussion on the scope of the ‘good faith principle’ in voluntary arrangements, and the factors which a judge may take into account when considering a bankruptcy petition. The judgment also considers the scope of the Turner principle, the rule against penalties, and the application of the Consumer Credit Act to Tomlin Orders.
Mark Phillips QC acted for Mr Gertner, while Felicity Toube QC and Robert Amey acted for Laser Trust (Mr Gertner and Laser Trust were the successful appellants). At first instance, Hannah Thornley also appeared for Mr Gertner and Andrew Shaw appeared for Mr Gertner’s nominees.