We acted for a liquidator on an application under paragraph 75 of Schedule B1 to the Insolvency Act 1986 for an order that the former administrators of a group of companies had acted in breach of fiduciary duty and had committed misfeasance in the way they charged for their time.
The question of the exercise of the Court’s discretion to grant permission to bring such an application went to appeal, with the Court finding that, regardless of limitation, the passage of time could impact on permission to bring an application. The Court was concerned that professionals who would have taken on other appointments after they retired as administrators should not be expected to recall details of historic cases and could therefore be at a disadvantage if an application was brought significantly after the administrators retired.
