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ARTICLE · 17 MARCH 2006

Extension of administration period

What happens if an application to the court for an order extending the period of administration is made before expiry of the period but the court does not hear the application until after the period has expired?

United KingdomFinance and Banking
Peter Fidler
Peter Fidler

What happens if an application to the court for an order extending the period of administration is made before expiry of the period but the court does not hear the application until after the period has expired?

Paragraph 77(1) of Schedule B1 to the Insolvency Act 1986 says that an order of the court [extending the administrator’s term of office] may be made in respect of an administrator whose term of office has already been extended by order or by consent, but may not be made after the expiry of the administrator’s term of office.

The first and obvious point to make is that the administrator should make his application in good time for it to be heard before the period expires. Nevertheless sometimes things do go wrong. In Re T.T. Industries & Anor (Unreported, 26 April 2005. Chancery Division (Birmingham District Registry) (HHJ Norris QC)) the application was made 3 days before expiry of the period but not issued by the court until 20 days later (i.e. 17 days after expiry) and not

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