...the Insolvency Rules 1986: In re Toshoku Finance UK plc [2002] 1 WLR 671. Rates accruing on premises occupied by a company while in an old-style...4.218 and was introduced well after the decision of the House of Lords in In re Toshoku Finance UK plc. The issue is whether rule 2.67 is to be given a different interpretation from rule 4.218...para 17 of his speech.29. The House of Lords in In re Toshoku Finance UK plc rejected the exposition in In re Atlantic Computer Systems plc of the "liquidation expenses" principle as...

...Re Toshoku Finance UK plc [2002] 1 WLR 671 that Rule 4.218 contained an exhaustive statement of liquidation expenses. 6. Rule...

...." 17. In Re Toshoku Finance UK plc [2002] UKHL 6, [2002] 1 WLR 671 (HL) the...have been to give them a greater priority. Second, there is nothing in my judgment in Re Toshoku Finance UK plc [2002] UKHL 6...disbursements by the administrator in the course of the administration are payable as an expense; (b) Rule 2.67(1)(f) mirrors Rule 4.218(1)(m) (liquidation), in relation to which it was held in Re Toshoku...

...reference there to the decision of the House of Lords in Re Toshoku Finance UK Plc [2002] 1 WLR 671, quoting at paragraph 23 from Lundy Granite itself...after the quarterly payments fell due. The recent cases to which I was referred are Goldacre (Offices) Limited v. Nortel Networks UK Limited....]2. The touchstone for the application of the principle is the use by a liquidator or administrator of the property for winding-up or administration: Toshoku at [26] citing Re...

...[2002] UKHL 6LORD HOFFMANNMy Lords,    1. Toshoku Finance (UK) Plc ("the company") is in creditors...' voluntary liquidation. It was a subsidiary of a Japanese corporation called Toshoku Ltd, which went into liquidation in December 1997. The resolution to wind up the company was passed on 26 January1998...("the liquidation date"). Two partners in PwC ("the liquidators") were appointed joint liquidators. The only substantial asset was a debt owing by another Toshoku subsidiary called Toshoku Europa...

...Toshoku Finance UK plc [2002] 1 WLR 671 was that the potential liability was to be treated as an expense of the administration. 57...In re Toshoku Finance UK plc [2002] 1 WLR 671. 98. The question which would arise if the potential liability under the FSD...Brothers Europe Limited ("LBEL"), the other main London operating company, are subsidiaries of Lehman Brothers Holdings plc ("LBH"), which is itself wholly owned by Lehman Brothers UK Holdings Limited...

...of Lords in Re Toshoku Finance UK plc [2002] 1 WLR 671. 43. At the second hearing, Ms Stonefrost submitted that it was not open to...accept that the decision of the House of Lords in Re Toshoku Finance UK plc [2002] 1 WLR 671 (to which I refer below), as to the operation of rule...Toshoku Finance UK plc to the effect that the list of expenses in rule 4.218 was an exhaustive list. If the only relevant part of rule 4.218 was rule 4.218(3)(h) and if that referred to the costs of a...

...of the rules and of the previous decision of the House of Lords in In Re Toshoku Finance UK Plc [2002] 1 WLR 671 (which related to a company in...closeness of the wording between what is now rule 2.67 (applicable to administrations) with the wording in rule 4.218 considered by the House of Lords in Toshoku. He held, in accordance with his ruling...as a result of subsequent delegated legislation which came into effect on 1st April 2008. The House of Lords in Toshoku held that corporation tax was payable in a liquidation as a liquidation expense...

...Rule 4.218, and that this is to be treated as a complete statement of the liquidation expenses (subject only to qualifications contained in the Rules themselves). See Re Toshoku Finance UK plc [2002...

...London Metallurgical Co " (p 140)16. The second authority is Re Toshoku Finance UK plc [2002] 3 All E R 961 in which the House of Lords had to consider...person to whom such costs are ordered to be paid."17. In Toshoku Lord Hoffmann said: "The courts have treated the rule [i.e. the rules which lead to r. 4.218] as...my attention to Re Mark One (Oxford Street) plc [2000] 1 BCLC 462 and In re UCT Ltd [2001] 1 WLR 436 to emphasise the point that the making of an order like that...

...regimes is different." [10] The observations of the Court of Appeal in Atlantic Computer Systems Plc were disapproved in part by the House of Lords in In re Toshoku Finance UK Plc, but...Finance UK Plc [2002] UKHL 6; [2002] 1 WLR 671. However, two important points should be borne in...) Rules 2003... which were made on 8 August 2003, well over a year after the decision of the House of Lords in In re Toshoku Finance. It is inconceivable that the rule-making authorities were unaware...

...liquidator, that is liable for rent and rates, albeit that they may be payable as expenses of the liquidation: see, as regards rates, In re Toshoku Finance UK plc [2002...

...4.218(1)). I fail to see how liability for protective awards can possibly be said to be an expense of the liquidation. I find nothing in Re: Toshoku Finance UK Plc [2002...

.... 16. The most recent and authoritative statement of the Lundy Granite principle is that made by Lord Hoffman in Re Toshoku Finance UK plc [2002] 1...WLR 671. That case was concerned with a liquidator rather than an administrator. However, in Goldacre (Offices) Ltd v Nortel Networks UK Ltd...conduct of the administrators was precisely that which the Court of Appeal in Re Atlantic Computer Systems plc [1992] Ch 505 was referring to at pages...

...is nothing in my judgment in Re Toshoku Finance (UK) plc [2002] BCC 110; [2002] 1 WLR 671...view that it is not the ratio in Re Toshoku Finance (UK) Plc that any liability imposed on a company which is not provable as a debt is thereby rendered a necessary disbursement. Examples of liabilities...84:"The observations on rates, as being necessary disbursements within r.4.218(1)(m), in Re Toshoku Finance (UK) Plc may, strictly speaking, be obiter but all members of the House of Lords...

...after the insolvency event.'30. Thus, as Lord Hoffmann explained in In re Toshoku Finance UK plc [2002] UKHL 6 at [25....'40. In re Toshoku Finance UK Plc [2002] 1 WLR 671 the House of Lords considered an application by liquidators of a subsidiary of...to pay rent under a lease is not a liability incurred after the onset of insolvency. It is, as we have seen from In re Toshoku Finance UK plc, at para 27, a liability incurred when the lease was...

...joint liquidators of Toshoku Finance UK Plc ("the Company") for directions in relation to the discharge of an alleged liability to corporation tax on interest receivable after the commencement of the...wholly owned subsidiary of Toshoku Finance Limited, a company registered and incorporated in Japan. Toshoku Finance Limited was itself a wholly owned subsidiary of Toshoku Limited - the ultimate holding...Toshoku group was in financial difficulties. On 18 December 1997 the directors of Toshoku Limited filed a petition for re-organisation in Japan. At or about the same time Toshoku Finance Limited was...

...Lords in Re Toshoku Finance UK Ltd plc [2002] 1 WLR 671. However, the passage cited above, which is not part of the reasoning for the decision, was...". Necessarily this brings in the definition of "debt" in rule 13.12, for the purposes of a winding-up: see Re Toshoku Finance UK plc per Lord Hoffmann at para 24. It is only if claims fall within that...distribution of asbestos products. More recently it diversified into other product areas not necessarily involving asbestos, particularly the manufacture of parts for use in the automotive industry. The UK...

..., or of disposing of it advantageously, or otherwise for the benefit of the insolvent estate: see Re Lundy Granite Co, ex parte Heavan (1871) LR 6 Ch App 462, Re Toshoku Finance UK plc [2002..., [2010] EWHC 3010 (Ch), on 10 December 2010. The appeals, for which he gave permission, came on before us at the end of July 2011. 2. UK legislation for the...shortfall under section 75 is estimated to be of the order of 125 million; in the case of Nortel Networks UK Ltd it was put at 2.1 billion when that company went into administration in January 2009...

...which the court has any discretion: see Re Toshoku Finance UK plc [2002] UKHL 6, [2002] 1 WLR 671...plc was the parent of the group. It is in compulsory liquidation. I will refer to it as Group. It had a number of subsidiaries, of which the most relevant for present purposes was called Save Service...Stations Ltd. It is in creditors' voluntary liquidation, and has changed its name to SSSL Realisations (2002) Ltd. I will call it Stations. The third interested party is AIG Europe (UK) Ltd, which is...