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05 September 2008
Issue: 7335 / Categories: Case law , Law reports , Costs
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Law Reports Bankruptcy—Trustee in bankruptcy—Removal from office

Donaldson and another v O’Sullivan and another [2008] EWCA Civ 879, [2008] All ER (D) 393

Court of Appeal, Civil Division; Ward, Dyson and Lloyd LJJ; 30 July 2008

Section 303(2) of the Insolvency Act 1986 (IA 1986) confers power on the court to appoint a new trustee in bankruptcy, which it can exercise so as to replace a trustee removed under s 298 of IA 1986. That is also the position in compulsory liquidations under s 168(3).

Jeffrey Littman (instructed by Morgans) for the applicant. Christopher Brockman (instructed by Meade King) for the respondent. Richard Ritchie (instructed by the Treasury Solicitor) for the official receiver.

The applicant was discharged from bankruptcy with liabilities still outstanding. In 2006, her trustee in bankruptcy applied for a block transfer order which would have the effect of removing him from office as trustee in bankruptcy of the appellant, and appointing the respondent in his place. The judge allowed the trustee’s application, however, the respondent

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