A liquidator's obligation to pay rent for property occupied
during the liquidation as an expense has been long-established, and
the operation of Rule 4.218 of the Insolvency Rules is clear. Until
recently however, the position in relation to administrations was
less so. The High Court decision of HHJ Purle in the case of
Goldacre (Offices) Limited v Nortel Networks Limited (in
administration) [2009] EWHC 3389 (Ch) has helpfully
clarified the position and it is now clear that administrators who
continue to occupy the company's premises have to pay the rent
passing under the lease as an expense of the administration.
Prior to its administration, Nortel occupied premises under two
long leases. Following their appointment, the administrators
continued to occupy part of one of the properties. The landlord
served notices under section 6 of the Law of Distress Amendment Act
1908 on the sub-tenants of the unoccupied parts, requiring them to
pay their rents directly to the
