Rundle, Re

Where a creditor admits receiving a payment made in a bankruptcy, an applicant has no proper basis for pursuing court proceedings merely to obtain documentary proof of that receipt. Written confirmation can be requested directly. A court may treat the substantive issue as no longer requiring determination and make an appropriate costs order. An applicant’s limited means, without opposition to the costs application, does not itself provide grounds for an appeal or permission to appeal.

Mr Rundle, a bankrupt serving a life sentence, applied for permission to appeal against a costs order made by Mr Registrar Baister in the Bankruptcy Court. His underlying application concerned whether money said to have been paid by his trustee in bankruptcy to the Inland Revenue had in fact been received. The Inland Revenue confirmed receipt at the hearing. Mr Rundle then desisted from the substantive application, but the registrar ordered him to pay costs sought by the Department of Trade and Industry. The central issue was whether there was any basis for permitting an appeal.

1. Application dismissed. Lord Justice Sedley reconsidered an earlier refusal on the papers after considering Mr Rundle’s further submissions, but found no basis for granting permission to appeal.
2. The substantive dispute had ceased to require adjudication. Mr Rundle’s concern was proof that the trustee’s payment had reached the Inland Revenue. The Inland Revenue’s solicitor confirmed receipt in court. That admission waived the corresponding part of the Inland Revenue’s claim against Mr Rundle, so insisting on documentary proof could not justify continuing the application.
3. If written confirmation was wanted, it could be requested and obtained directly. Bringing the matter before a court was therefore unnecessary and wasteful, including of Mr Rundle’s own time.
4. The registrar was entitled to make no order other than that the Department of Trade and Industry’s costs be paid. Mr Rundle had not opposed the costs application and had only explained that, living on £7 a week, he would be unable to pay. His financial position did not establish an arguable ground of appeal.

Order: application dismissed.

1. Court of Appeal (Civil Division): Lord Justice Sedley reconsidered an initial refusal on the papers and dismissed the renewed application for permission to appeal.
2. Bankruptcy Court: On 4 April 2000, Mr Registrar Baister heard Mr Rundle’s application. After the Inland Revenue confirmed receipt of the payment and Mr Rundle desisted from the substantive issue, the registrar made an order for the Department of Trade and Industry’s costs. No formal judgment was apparently given.