Key points

  • In order to rescind a winding up order the court must be satisfied that the circumstances of the case are materially different to those before the court that made the winding up order.
  • A stay of a winding up order would not be made as an alternative route was available. 

Facts

On an application to rescind or stay a winding up order a director asserted that he would put the company into administration so that the company's goodwill, name and database could be sold to a third party, which had made an offer conditional on the winding-up order being rescinded. The director argued that he wanted to challenge a tax assessment which if successful would allow the creditors of the company to be paid in full. 

Decision

The application was unsuccessful. 

Comment

There were concerns over the offer to purchase the assets.  The judge concluded that the purchase could be completed inside the liquidation. The rescission of the winding up order was unnecessary. The circumstances were not materially different to those before the court that made the winding up order.  A stay was also inappropriate; it is open to an interested party who believes that the tax appeal should be pursued to apply to the court for a direction which would enable them to prosecute the tax appeal in the name of the company or the liquidator.

Credit Lucky Ltd and another v National Crime Agency