New Judgment: Re Eversholt Rail (365) Limited [2026] EWHC 101 (Ch)

Sir Anthony Mann has handed down a judgment comprehensively dismissing the appeal. The judgment underlines the importance of the reasonable requirement test as a precursor to relief under sections 235 and 236 of the Insolvency Act 1986. The Judge considered what an officeholder needs to establish in order to get relief; holding that an officeholder was always required to demonstrate a reasonable requirement to the relief they sought. That was an express requirement under section 235 and the authorities made clear it was a requirement under section 236 also.

The Judge held that the stated desire of the Appellants to reconstitute the entirety of the company’s knowledge (to see “everything forever” as the Judge put it) did not absolve the Appellants of the need to demonstrate a reasonable requirement to the relief sought. The reconstitution of the company’s knowledge is one of the potential purposes of the sections, but it is not a sufficient requirement for relief. The Judge considered that there may be some cases where the wide relief sought by the Appellants would be justified but an applicant would need to make that out on the facts.

The Judge also underlined that the appeal court will not readily intervene with evaluative decisions and case management decisions made by first instance judges (for example, as to whether a reasonable requirement had been made out or whether to grant more limited relief than that which was sought).

To access the Judgment click here.

Daniel and Paul were instructed by Norton Rose Fulbright LLP (Mark Craggs, Grace Carpenter and Emma Cridland).