Wednesday, 22 May 2013

UK: England and Wales: assisting a foreign court and section 426 of the Insolvency Act 1986

The Court of Appeal judgment HSBC Bank Plc v Tambrook Jersey Ltd [2013] EWCA Civ 576 was published today, following a decision earlier this month to overturn a decision of Mann J given last month in the High Court (see [2013] EWHC 866 (Ch)). At issue was the interpretation of section 426 of the Insolvency Act 1986 and the circumstances in which English courts were able to accede to a request for assistance from a foreign court (here, the Royal Court of Jersey). The trial judge held that assistance could not be given because there was no existing or planned insolvency proceeding in Jersey. The Court of Appeal disagreed. Lord Justice Davis (Longmore and McFarlane LJJ concurring) held that Mann J had adopted an approach and interpretation of section 426 that was unduly and unnecessarily restrictive.

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