Simon Hill successful in Bankruptcy Appeal

Author: Reporter
In: News Published: Friday 05 July 2019


Simon Hill successfully represented the respondents Mr and Mrs Bell in their resistance to an appeal brought against an order setting aside statutory demands served upon them. The case is reported as Promontoria (Chestnut) Limited v Bell and Bell [2019] EWHC 1581 (Ch).

The appeal hearing was before Mr Justice Zacaroli in the High Court on 16 May 2019, with judgment handed down on 20 June 2019. The appeal court agreed with the judge at first instance, that the statutory demands served were defective because they failed to comply with r.6.1 of the Insolvency Rules 1986, in that the statutory demands failed to specify in rem security held by the creditor over the debtor/respondent Mr and Mrs Bell's properties. The in rem security should have been specified even though the in rem security did not secure the debt relied upon in the statutory demands (a guarantee debt), but secured the principal debtor's obligation to the creditor (which, in turn, was in personam secured by the guarantee). 

The judgment of Zacaroli J can be read here.

An analysis of the case can be read here.

Simon Hill instructed on a direct access basis.