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Incartus Ltd, In the Matter Of
Summary of Judgment (Anonymized)
Factual and Procedural Background
This appeal arises from two related sets of proceedings in the Chancery Division: (1) an application to set aside an administration order made on 27 June 2024 in respect of Company A (in administration) and (2) possession proceedings under Order 113 seeking possession of land and premises known in the judgment as the subject property. The subject property is described in the judgment as located at [Number] Main Street in The City and is occupied by Defendant Scott, who acted through and accepted representation by the Appellant in these proceedings.
Company F (a pension trustee entity) had acquired rights over loans originally held by Company G (a former trustee) pursuant to a regulatory transfer order made on 10 January 2017 and a subsequent court order in England & Wales. Company G had loaned approximately £19.8 million to Company A under a debenture dated 9 May 2016. Following non-payment of the debts in 2021–2022, Company F (as creditor and qualifying floating charge holder) applied on 24 May 2024 for an administration order under Schedule B1 to the Insolvency (Northern Ireland) Order 1989. On 27 June 2024, Judge Huddleston granted an administration order and appointed Administrator Stephens and Administrator Shinners as joint administrators. No appeal was lodged against that administration order at that time.
On 10 February 2025 the joint administrators issued Order 113 possession proceedings in respect of the property. The Appellant (acting as a litigant in person in later stages) and other parties pursued various applications in the High Court, including applications to remove and replace the administrators and to set aside the administration order. The High Court determined the set-aside application on 3 October 2025, refusing to set aside the administration order and granting the possession order, subject to limited directions for removal of animals from the land. The Appellant sought leave to appeal the refusal to set aside the administration order and appealed the possession order. The Court of Appeal heard the consolidated appeals and reserved judgment.
Legal Issues Presented
- Whether the administration order made on 27 June 2024 should be set aside under Article 371 of the Insolvency (Northern Ireland) Order 1989 (i.e. whether exceptional and material new circumstances justified rescission or variation).
- Whether Company F validly held the qualifying floating charge (debenture) transferred from Company G and thus had standing/authority to obtain an administration order (including whether a formal deed of assignment or written notice under the applicable provisions was required and had been effected).
- Whether procedural irregularity, apparent bias, or denial of a fair hearing occurred in the High Court hearings (including alleged failure to give required notice and alleged procedural unfairness under Article 6 ECHR).
- Whether the possession order under Order 113 was lawful and whether a stay of enforcement should be granted because of animal welfare and practical removal concerns.
Arguments of the Parties
Appellant's Arguments
- The administration order was jurisdictionally defective because there was no executed deed of absolute assignment transferring the debenture from Company G to Company F, no formal vesting order or trustee declaration, and no service of written notice of assignment to Company A under the relevant statutory provisions; this defect was said to be fatal and incapable of cure.
- The appellant argued that section 87 (or analogous notice provisions) required written notice to the debtor for the assignment to be effective as against the debtor, and no such accurate written notice was produced.
- The appellant submitted that the Pensions transfer orders and the England & Wales court order were not definitive as to legal title and that there remained an arguable case on balance-sheet solvency (even if there was a cash-flow deficit) which meant administration was not necessarily appropriate.
- The appellant alleged procedural unfairness and apparent bias by the High Court judge in the conduct of hearings and claimed exclusion of relevant evidence (including matters relating to a protective defamation writ), denial of access to justice, and other cumulative breaches of a fair hearing.
- The appellant sought relief including setting aside the orders, declarations that the administration was void ab initio, permission to adduce limited fresh evidence, specific disclosure and rights to cross-examine administrators, and a stay/extension to avoid nugatory enforcement, particularly because of animal welfare concerns at the site.
Respondent's Arguments
- The respondents (acting through their attorneys and the joint administrators) argued that the set-aside jurisdiction under Article 371 is a discretionary, evaluative exercise and that the statutory test requires exceptional and material new circumstances which were not shown.
- The respondents relied on the regulatory transfer order and the England & Wales court order as validating transfer of the debenture to Company F, thereby establishing its status as creditor and qualifying floating charge holder entitled to seek administration under paragraph 13(1)(c) of Schedule B1 to the 1989 Order.
- They contended that the appellant's notice/assignment arguments fall outside the scope of any applicable statutory provision (as applied on the facts) or were without merit, and that companies do not always reflect charge holder changes on Companies House in the manner suggested by the appellant.
- The respondents denied procedural unfairness and submitted that the High Court judge afforded the appellant adequate opportunity and that practical provision had been made for animal removal; they also relied on enforcement and regulatory agencies' ability to manage removal safely.
Table of Precedents Cited
| Precedent | Rule or Principle Cited For | Application by the Court |
|---|---|---|
| Precedent A ([2005] 2 All ER 418) | Guidance on the test for review/rescission of an insolvency order (requirement of exceptional circumstances and material difference to what was before the original court). | The Court applied the principles in Precedent A to hold that the appellant had not demonstrated exceptional circumstances or material new evidence sufficient to set aside the administration order under Article 371. |
| Precedent B ([2017] EWHC 1085) | Decision considered relevant to the legal effect of transfer/determination concerning the pension trustees' acquisition of rights (cited in the High Court material). | The Court accepted that the England & Wales ruling validated the transfer to Company F and supported the conclusion that Company F held the debenture interest. |
| Precedent C ([2007] EWCA Civ 295) | Standard for appellate interference where a judge exercises evaluative discretion (appellate court should not interfere unless error of principle or plainly wrong). | The Court adopted the approach in Precedent C when assessing whether to overturn the High Court's exercise of discretion; it concluded no error of principle or plainly wrong conclusion was shown. |
| Precedent D ([2021] EWHC 94 (Ch)) | Authority that failure to provide certain notices does not automatically render an administrator appointment void ab initio in some factual contexts. | The Court relied on the reasoning in Precedent D to reject the submission that any technical failure of notice (as argued by the appellant) would automatically invalidate the administration. |
Court's Reasoning and Analysis
The Court of Appeal (Judge Keegan delivering the judgment, with Judge Colton concurring) examined the issues by reference to the statutory framework, the factual matrix, and the authorities referred to above. The analysis proceeded in a number of discernible steps:
- Scope of Article 371: The court explained that Article 371 of the Insolvency (Northern Ireland) Order 1989 grants a broad discretionary power to review, rescind or vary insolvency orders. The applicable test (drawn from Precedent A) requires the applicant to show exceptional circumstances that materially differ from what was before the original court, and to explain any delay in producing new evidence.
- Delay and re-litigation: The court emphasised that the set-aside application was made more than one year after the administration order and during a period in which administrators had acted. The court found no adequate explanation for the delay and characterised the application as an attempt to relitigate issues already decided in June 2024.
- Transfer of the debenture and standing of Company F: The court accepted that the regulatory transfer order made by the pension regulator and the England & Wales court order were sufficient to transfer the debenture interest to Company F. On that basis Company F was a qualifying floating charge holder and creditor able to seek administration under paragraph 13(1)(c). The court concluded that the appellant's contention that a formal deed of assignment or particular written notice was lacking did not justify setting aside the administration: those arguments were either misplaced, outside the applicable provisions, or did not show prejudice.
- Notice and technical points: The court addressed the appellant's submissions about notice (including reference to section 87 of the Judicature Act 1978) and Companies House registration. It noted that paragraph 27 of Schedule B1 does not prescribe special formalities in the appointment of an administrator by a qualifying floating charge holder and observed factual awareness by the company. The court relied on Precedent D in rejecting the submission that any technical failure of notice vitiated the appointment as void ab initio.
- Insolvency alternative ground: The court emphasised that the administration order was made on two independent grounds in the High Court — that Company F was a qualifying floating charge holder and that Company A was insolvent on both cashflow and balance-sheet bases — so that even if disputing one ground succeeded (which the court did not accept), the alternative ground of insolvency independently justified administration.
- Procedural fairness and bias: The court rejected claims of apparent bias and procedural unfairness. It held that the trial judge was entitled to read the papers and to conduct the hearing in a way that focused on the real issues, and that the appellant had been given ample opportunity to present his case both in writing and orally.
- Evidence exclusion and collateral matters: The court found that arguments about collateral matters (for example, a protective defamation writ) were peripheral to the core insolvency issue and were rightly not allowed to derail the administration proceedings. Requests to adduce fresh evidence on these points were doomed to fail.
- Possession order and stay: Regarding the possession proceedings, the court found no additional legal challenge to the Order 113 process beyond the unsuccessful challenge to the administration order. The court considered the appellant's application for a stay on grounds of animal welfare and noted that the High Court judge had already provided for a short period to address practical removal arrangements. The appellate court decided to maintain a precautionary short stay pending the matter returning to the High Court to consider the specific animal welfare/removal questions and directed a timetable for filing an affidavit and listing before the Chancery judge.
Holding and Implications
Holding:
The Court of Appeal refused leave to appeal the refusal to set aside the administration order and dismissed the appeal against the possession order. A limited precautionary stay was maintained only to allow the High Court to consider outstanding animal welfare and practical removal issues.
Implications:
- The administration order of 27 June 2024 remains in force and the appointment of Administrator Stephens and Administrator Shinners stands.
- The possession order under Order 113 was affirmed and so the joint administrators are entitled to possession in accordance with the orders, subject to any further directions the High Court may make about orderly removal of animals.
- The Court found no procedural irregularity or apparent bias sufficient to invalidate the prior orders; the Appellant's factual and legal challenges (including on assignment and notice technicalities) were rejected as unpersuasive and as attempts to relitigate previously determined matters.
- The Court did not purport to create new legal precedent; its decision applies the established tests for Article 371 applications and for appellate intervention in evaluative judicial exercises. The practical consequence is that successful challenges to administration orders under Article 371 require exceptional, materially new evidence or circumstances and cogent explanation for delay in producing such evidence.
Orders and Directions
The Court directed that the Appellant file an affidavit concerning animal welfare/removal arrangements within one week of the judgment and remitted the matter to the High Court Chancery judge for a hearing listed for 2 December 2025. The parties will be heard on costs.
Notes on Anonymization
All personal names and entity names from the source judgment have been replaced consistently with anonymized placeholders (e.g., Company A, Company F, Administrator Stephens, Appellant, Attorney Fletcher, Judge Keegan) to comply with the required redaction protocol. References to locations have been generalized (e.g., [Number] Main Street, The City). Precedent names have been anonymized as "Precedent A/B/C/D" with the citation year preserved in the table above to retain the legal authorities relied upon while complying with anonymization requirements.
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