Judgment in the Court of Appeal case of Pillar Denton v Game
Retail- about rent due during the administration of Game was
handed down yesterday. It is a landmark ruling for administrators,
on the thorny issue of the payment of rent during the period of the
tenant's administration.
Up to now, we have been applying the ruling in the
Goldacre and Luminar cases that we have
posted on previously. The results of these cases created the
trend of administrators being appointed just after the rent quarter
day. The reason for that was that the cases decided that for rents
due in advance, the whole quarter's rent could not be
apportioned and so, where an administrator goes into occupation of
premises for the purposes of the administration after the
quarter's rent has fallen due, the rent due for the period of
the occupation up to the next quarter day cannot be recoverable as
an expense of the administration, but only as an unsecured debt in
the administration. By having to
