The receivers sought and were granted sanction by the court in respect of the sale and the former owners were on notice of the hearing of that application and attended court, but did not object to the sanction application, simply reserved their rights.
The prior owner subsequently issued proceedings against the receivers for breach of duty and sale at an undervalue.
The receivers applied to strike out that claim on the basis, among other things, that the court had sanctioned the sale. The High Court judge agreed with the receivers and struck out the claim. The former owners appealed parts of that that decision to the Court of Appeal.
The Court of Appeal dismissed the appeal and found that sanction by the court to a sale by court-appointed receivers was not carte blanche protection against all and any claims as it will depend on the sanction sought and given.
However, in this case, it was not open to the former owners to challenge the conduct of the receivers, particularly in circumstances where the former owners had been represented at the sanction hearing and had failed to raise any issues about the receivers’ conduct.
If you have an objection to the conduct of a court appointed official and are given notice of their application for sanction of their conduct then, clearly, that is the time to voice your concerns.
Denaxe Limited v Cooper and Rubin [2023] EWCA Civ 752
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