Applications for compensation from the Official Receiver – Walker v The Official Receiver  EWHC 2868 (Ch)
29th November 2021
Natasha Dzameh, a commercial and chancery barrister and Deputy Head of the Commercial team, has produced a case analysis of Walker v The Official Receiver  EWHC 2868 (Ch) for LexisPSL.
This case contains helpful guidance on:
- the operation of the compensation provisions in section 304 of the Insolvency Act (“IA”) 1986;
- the powers of the trustee in bankruptcy when the beneficial interest in property is held by the bankrupt with other individuals;
- the importance of disclosure of the bankruptcy file and re-assessing a case upon receipt of said disclosure.
Section 304(1) of the IA 1986 states as follows:
“(1) Where on an application under this section the court is satisfied –
(a) that the trustee of a bankrupt’s estate has misapplied or retained, or become accountable for, any money or other property comprised in the bankrupt’s estate, or
(b) that a bankrupt’s estate has suffered any loss in consequence of any misfeasance or breach of fiduciary or other duty by a trustee of the estate in the carrying out of his functions,
the court may order the trustee, for the benefit of the estate, to repay, restore or account for money or other property (together with interest at such rate as the court thinks just) or, as the case may require, to pay such sum by way of compensation in respect of the misfeasance or breach of fiduciary or other duty as the court thinks just.
This is without prejudice to any liability arising apart from this section.”
As is evident from Walker, even a modest sum may be considered of significant benefit to the estate.
The case analysis can be found here and requires a subscription to Lexis PSL.
Details of Natasha’s commercial, real estate and insolvency practices can be found on each hyperlink. She is frequently instructed on complicated, high value commercial and/or chancery matters. Natasha is described in Chambers UK as someone who “gives a very thorough review of issues and detailed written advice, thus clients feel very confident with her approach.” “She is so enthusiastic and determined to put in the hard yards. Solicitors love her and she fights her corner really hard.”