Vol 17 (2020) - Issue 2

Article preview

Wallace (as liquidator of Carna Meats (UK) Ltd) v Wallace

Synopsis

The recent High Court decision in Wallace (as liquidator of Carna Meats (UK) Ltd) v Wallace1 clarifies whether an order for the production of documents under s.236(3) of the Insolvency Act 1986 (the 'Act') can be made against a person resident abroad.

In Wallace v Wallace, Johnson J made the requested order, requiring the former bookkeeper of a company in compulsory liquidation (the 'Bookkeeper') to produce all documents, books and records in his possession relating to the company, even though he was resident in the Republic of Ireland.

The Court found that the power to require the production of documents under s.236(3) is a standalone power, independent of the power to summon a person to appear before the Court under s.236(2). That being so, the Court held that it was natural to construe this power as capable of extending to persons outside the jurisdiction. In this case, the Court found that the Bookkeeper was sufficiently connected with the jurisdiction to justify making the requested order.