Allied Irish Bank (GB) v Rayne

A bankrupt’s standing to pursue an appeal concerning property or a judgment enforceable only against the bankruptcy estate is ordinarily displaced by the bankruptcy. The issue may require determination after hearing the creditor and the Official Receiver, particularly where the appeal concerns the judgment underlying the bankruptcy petition. An application to reinstate an administratively dismissed permission application should be dealt with fairly and, where necessary, at an inter partes hearing with the relevant insolvency information before the court.

Miss Rayne applied to reinstate her dismissed application for permission to appeal against a judgment concerning her dispute with Allied Irish Bank (GB). Her bankruptcy order had followed an unsatisfied statutory demand based on a judgment debt, reduced by a county court judgment obtained by her. Her appeal against the bankruptcy order had been dismissed by His Honour Judge Behrens, sitting as a High Court judge. The permission application was then treated as dismissed after an order requiring a proper bundle index was not regarded as complied with.

The bank submitted that bankruptcy deprived Miss Rayne of standing to pursue the outstanding appeal. The central issue was whether the reinstatement application and the related permission application should be dismissed or instead considered at an inter partes hearing.

1. The application for reinstatement was adjourned. The related application for permission to appeal was to be re-listed on notice to Allied Irish Bank (GB), and both applications were to be heard together.

2. The court considered the general principle stated in Heath v Tang [1993] 1 WLR 1421: a bankrupt ordinarily lacks standing to appeal in their own name from a judgment enforceable only against property vested in the trustee in bankruptcy. The principle was treated as potentially applicable even where the judgment founded the bankruptcy petition.

3. That preliminary issue was not finally disposed of on the present application. Miss Rayne disputed the effect of the bankruptcy and alleged that her permission application had been dismissed because of administrative confusion concerning the index. The court considered that the matter required full investigation at an inter partes hearing.

4. The Official Receiver was directed to attend the adjourned hearing and provide an up-to-date account of the bankruptcy. Allied Irish Bank was to be given notice and represented. The judgment was to be supplied to Miss Rayne at public expense.

• Court of Appeal (Civil Division): The application to reinstate the dismissed permission application was adjourned. The related permission application was directed to be re-listed and heard with it on notice to Allied Irish Bank (GB).
• High Court, Newcastle: His Honour Judge Behrens dismissed Miss Rayne’s appeal against the bankruptcy order and refused a stay of advertisement.
• Newcastle County Court: District Judge Bullock made a bankruptcy order on 4 May 2000 after hearing the creditor and a representative for Miss Rayne.