Seg Bell & Anor v Ratna Singh & Anor

Where a judgment debtor’s pension rights do not presently give rise to a debt due or accruing due, the court may use its power under Senior Courts Act 1981, section 37, to require the debtor to draw down the pension. A third-party debt order can then attach to the resulting debt. The existence of other creditors or other potential enforcement targets does not prevent enforcement against available assets. Objections unrelated to the statutory requirements for a third-party debt order are immaterial.

The claimants sought interim third-party debt orders against pensions held by the defendants with Mattioli Woods Plc and Phoenix Life Limited. The underlying judgment debt, arising from misrepresentation, exceeded US$1.5 million. Service formalities were undisputed and the pension providers adopted a neutral position.

The court reconsidered an interim order previously made on the papers in relation to the Mattioli Woods pensions and considered whether to make it final. It also considered whether to make an interim order concerning the Phoenix Life pension, together with the auxiliary order necessary to enable enforcement against pension benefits.

1. The court had jurisdiction under Civil Procedure Rules 1998, Part 72, to make third-party debt orders. The judgment debt and the defendants’ ownership of the pensions were not disputed, and the required service formalities had been satisfied.
2. Pension rights did not constitute a debt due or accruing due to the defendants. An auxiliary order under section 37 of the Senior Courts Act 1981 was therefore required. Following Blight v Brewster [2012] EWHC 165 (Ch), the court could require the defendants to take the necessary steps to draw down benefits, so that a debt would arise to which the third-party debt order could attach.
3. The defendants’ objections concerning alleged alteration of an oral-examination record, witness evidence, access to a transcript, and an alleged representation by counsel did not affect the statutory or procedural basis for the applications. The claimants were entitled to enforce against available assets and were not required first to pursue other debtors or assets.
4. The presence of other creditors was not a reason to refuse the orders. The claimants were substantially the largest creditors, and the court identified no reason not to proceed.
5. The interim third-party debt order concerning the Mattioli Woods pensions was made final. An interim third-party debt order was made concerning the Phoenix Life pension, with a further hearing required to determine whether it should be made final. An auxiliary order was made requiring the defendants to take any necessary steps to draw the benefits, with authority given to the claimants’ solicitors to do so in default.