Court of Appeal’s Ruling in the “Game” case
26th February, 2014
The decision of the Court of Appeal in the “Game” case brings clarity to the issue of what rent an administrator or liquidator is required to pay in respect of the use of rented property for the purpose of the administration or liquidation.
The Court decided that rent should be paid as an expense of the liquidation or administration at the rate provided for in the lease for the period in which the property is occupied for the purpose of the liquidation or administration. The rent is calculated on a daily pro rata basis.
Before this judgment, if a company went into administration the day after the rent for the next period had fallen due even if the rent had not been paid the administrator could continue to use the property without paying rent until the next rent instalment fell due. This gave rise to companies picking their date to enter administration so as to take advantage of this effectively rent free period of trading.
The Game decision is clear and removes the potential unfairness for landlords leaving insolvency practitioners and landlords alike knowing where they stand.
For more information on this please contact Nick Clarke [email protected] or 01244 405558
You might also be interested in...
9th August, 2018
We have been approached by a number of clients who have received a statutory demand, either personally or to their company, and they have asked us what to do about it. One business was contacted by a company demanding payment of a debt owed under a contract for TV advertising in a shopping mall. We presume – but... Read More »
3rd August, 2018
Agriculture and Estates specialist Ben Brassington has strengthened the services offered by Top 200 legal firm Aaron & Partners LLP A dairy farmer with more than 18 years’ experience as a Partner in his family’s farming business has been appointed by a top legal firm in Shrewsbury. Ben Brassington, who has also been working for several years as... Read More »