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ICC Judge Burton dismissed the applications as “fundamentally misconceived”. Her judgment provides a useful explanation of the extent of an officeholder’s obligation to demonstrate a reasonable requirement for the relief they are seeking. The Liquidators’ application was broadly described and sought disclosure and delivery up of all documents related to the insolvent company’s business.
The Judge held that the Liquidators had persistently failed to apprehend that they needed to demonstrate a reasonable requirement. She noted that while the Court would give considerable weight to the liquidators’ assertions of a reasonable requirement – it was necessary for them to go beyond stating that the documents evidently exist and were necessary to reconstitute the company’s books and records.
The Judge also emphasised the levels of cooperation which the Respondents had provided to the Liquidators. The Judge’s criticisms of the Liquidators’ conduct and their investigations will be of particular interest to practitioners.
Daniel and Paul were instructed by Norton Rose Fulbright LLP (Mark Craggs, Grace Carpenter and Emma Cridland).
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