Jersey Unreported Judgments

[2004]JRC013

royal court

(Samedi Division)

19^th January, 2004. 

In The Matter of O.T. Computers, Ltd., in administration.

Representation of O.T. Computers, Ltd.

Application by the Representor Company for orders: (1) that a letter of request be issued to the High Court of England & Wales, seeking assistance, pursuant to s.426 of the Insolvency Act 1986; (2) that the Representor inform the Judicial Greffier and the Viscount forthwith of any subsequent Order made by the High Court; and (3) granting the Representor leave to apply for such consequential directions as may be thought fit.

Advocate A. J. N. Dessain for the Representor Company.

The Viscount was present.

judgment

the bailiff:

1.        This is a representation by O.T. Computers Limited to which we shall refer as "the Company", which made an application to this Court on 28^th January, 2002, applying for an Order that the Court should issue a Letter of Request to the High Court of England requesting the assistance of that Court in the making of an Administration Order under the Insolvency Act 1986.

2.        The Court made that Order, issued the Letter of Request, and subsequently the High Court in England did, indeed, make an Administration Order in relation to the affairs of the Company.  The administration has now, we are told, been completed and the Company remains insolvent.

3.        The Company now seeks from this Court a further Letter of Request addressed to the High Court of England with a view to the discharge of the Administration Order; and the placing of the Company into an English creditors' voluntary liquidation. 

4.        The history to the affairs of the Company was set out in the Judgment delivered by this Court on the 28^th January, 2002, and it is unnecessary to repeat it.  In brief, however, the Company carried on the bulk of its business in England and there is no doubt that the main centre of interests of the Company was in that country.

5.        The headquarters of the Company were at Redhill and the Company had a number of shops in England from which computers were sold.  Almost all the economic activity of the Company was effectively undertaken in the United Kingdom.

6.        The Company is, of course, registered in Jersey and it would be possible for the Company to be declared en désastre, or for it to be placed in liquidation, pursuant to the provisions of the Companies (Jersey) Law 1991.

7.        We have, however, asked ourselves what is in the best interests of the creditors of the Company.  We have considered carefully the material placed before us, and in particular, the affidavit of one of the administrators, Mr Martin Gilbert Ellis, and an opinion from English Counsel.

8.        It seems clear that costs would be duplicated if any form of insolvency proceedings were to take place in Jersey concurrently with any proceedings in England.  We are satisfied, therefore, that it is in the interests of the creditors that, notwithstanding the availability of alternative remedies in this jurisdiction, an application should be made to the English Court for its assistance in placing the Company in liquidation in England.  We are satisfied that we have an inherent jurisdiction to do so.

9.        We accordingly order that a Letter of Request be issued to the High Court of Justice of England and Wales.  We make the orders set out in paragraphs (c) and (d) of the Representation.

10.      It will, of course, be open to the Company to return to this Court for further relief should that be thought necessary or desirable.  In order that the local creditors in particular may be aware of the course of the administration we order that a copy of this judgment, and of the Letter of Request, be forwarded to the Jersey Financial Services Commission. 

11.      We also order that the Company shall register with the Commission any subsequent order that might be made by the High Court of Justice in England placing the Company in liquidation.

Authorities

In Re A Debtor (Order in Aid No. 1 of 1979), ex parte Viscount of the Royal Court of Jersey (1981) 1 Ch 384.

In the matter of the Désastre of Royco Investment Company Limited (1984) JLR 236.

Insolvency Act 1986: s.426.

Companies (Jersey) Law 1991.