Vol 22 (2025) - Issue 6

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Carvill-Biggs v Reading [2025] EWCA Civ 619: Section 234 of the Insolvency Act 1986: Administrators’ Ability to Obtain Possession of Mortgaged Property

Synopsis
This appeal concerned the ability of administrators to obtain an order pursuant to section 234 of the Insolvency Act 1986 for possession of a residential property which a director of the company was occupying as a trespasser. Prior to the company going into administration, the property was charged by a legal mortgage from the company to a lender who enforced its security by appointing receivers under the Law of Property Act 1925 and with possession proceedings in the County Court as a mortgagee pursuant to CPR Part 55.
The judge at first instance made an order under s.234 of the Insolvency Act requiring the director to deliver up possession of the property to the administrators. The question for the Court of Appeal was whether s.234 permitted such an order to be made. The Court of Appeal (Snowden LJ giving the lead judgment with which King and Nugee LJJ agreed) held that it did not.