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Author: Chris Millar
Those that attended the IP seminar earlier this year will have hopefully reflected upon the wider aspects of the “means” available to seek and obtain recognition and reciprocity of insolvency proceedings e.g. UNCITRAL, EC Regulation, common law and/or Section 426.
In the final analysis, it is considered that these cases should not be a fundamental problem for IP’s as the issues highlighted can be avoided. Indeed, the recent case of “Bilta (UK) Limited v Nazir”  shows this issue in stark contrast where the High Court was willing to apply the scope of section 213 in an extra-territorial context.
Recovery by a Trustee of his costs can often be problematic. This may be particularly so where the bankrupt has managed to obtain an annulment. Whilst the recent case of “Appleyard v Wewelwala”  has clarified the right of a Trustee to recover his costs, at least up until such time as he became aware of the application for an annulment, there still remains the potential hurdle of Rule 6.142, and the right of the bankrupt (with permission) to challenge a Trustee’s costs as being excessive. The Court has shown a tendency to favour proportionality rather than justification, and has applied the guidelines within the Practice Statement (Fixing and Approval of Remuneration of Appointees) ; see “Brook v Reed” . Trustees should therefore be mindful of “proportionality” in terms of their likely costs in the administration of any estate, particularly if there is likely to be an annulment or otherwise a surplus in recovery.
Whilst Court proceedings are often contemplated and commenced in order to resolve civil disputes between private individuals or companies, in today’s current economic environment when the question of the cost of commencing such proceedings is ever more at the forefront of people’s minds, it is becoming more and more common for disputes to be resolved without a Court having to pronounce a formal judgment.
*What is the general nature and effect of judicial measures available for plaintiffs to obtain provisional relief affecting property of debtors to obtain security for judgments to be obtained (“attachments”)? Freezing property in place? Placing it in the custody of a third party, such as a court official, sheriff or marshall?*