Company

The principle in Re Lundy Granite Co, ex p Heavan (1871) 6 Ch App 462 could apply to a provisional liquidation. The landlord would not, in all cases, be entitled to priority: it would always depend upon whether or not the administrator, provisional liquidator or liquidator had either retained the property for the purpose of advantageous disposal of it, or had continued to use it. Doing nothing would not suffice.

The principle applied, not only when the liquidator retained the property for the benefit of the liquidation, but also when he continued to use it. It would be anomalous if the position differed as between administration and liquidation on the one hand and provisional liquidation on the other. Provisional liquidators were not mere caretakers, incapable of taking decisions for the benefit of the company.