All England Reporter, 2005, January, Carter v Society of Lloyds
Carter v Society of Lloyds
Adams v Society of Lloyds
CHANCERY DIVISION
LINDSAY J
26 JANUARY 2005
[2005] All ER (D) 240 (Jan)
Bankruptcy and individual insolvency - Statutory demand - Applications to set aside - Appeal against registrar's refusal to set aside statutory demands - Correctness of decision.
A and C had been Lloyd's names. On different dates a consent order had been made whereby Lloyd's had been enabled to recover certain sums. Thereafter judgments (the consent judgments) were entered against A and C, and, subsequently, statutory demands were raised in respect of the sums due. A and C then applied to have those demands set aside. In related proceedings in the Commercial Court they were seeking permission to appeal against the consent judgments out of time. Following the hearing of A and C's applications to set aside the statutory demands the registrar, inter alia, dismissed the applications and granted Lloyd's permission to present bankruptcy petitions. The registrar's reasons included the fact that it would be difficult to set aside the consent judgments, and that it would be speculative to form a view as to the prospect of any counterclaim. A and C appealed.

They contended, inter alia, that the registrar had been wrong to anticipate the outcome of the Commercial Court hearing in respect of the consent judgments.
The appeals would be dismissed.
The registrar's approach and conclusion could not be faulted.

There had been no error in the exercise of his discretion nor had he been wrong in principle. It was not for the bankruptcy court to inquire into whether another process had a real prospect of success but for an applicant to show that such a prospect existed. In the instant case, A and C had failed to put a compelling case that they had a real prospect of success in their other proceedings to the registrar.
Lexa Hilliard (instructed by the Legal Services Dept of the Society of Lloyd's) for Lloyds.
C represented himself.
A appeared by her representative.
Pamela Hardisty Barrister (NZ).