In the matter of BBY Limited (receivers and managers appointed) (in liquidation)

The case involved the liquidation of BBY Limited, with receivers and managers appointed and the company subsequently placed in liquidation. The dispute centred on the costs, charges, and expenses associated with the conduct of the liquidation. The court was required to determine whether the liquidators' orders for various classes of assets to share these costs were appropriate, given the illiquidity of one particular class of assets.

The central legal issue before the court was whether the liquidators' orders were valid and enforceable despite the illiquidity of one class of assets. Specifically, the court needed to assess whether the liquidators' decision to revert to an interim regime for the purposes of progressing the liquidation was justified. The court also had to consider whether the ultimate effect of the liquidators' actions would remain unchanged, regardless of the failure to serve all interested parties.

In its decision, the court found that while the liquidators' orders were appropriate in principle, they were flawed due to the failure to serve all interested parties. The court noted that the liquidators' decision to revert to an interim regime was justified by the illiquidity of one class of assets, and that this decision did not alter the ultimate effect of the liquidation. However, the court held that the orders were not valid and enforceable until all interested parties had been served. Consequently, the court made orders for service to be effected and directed that the liquidators comply with this requirement.

The final orders of the court were that the liquidators' orders for the sharing of costs, charges, and expenses by various classes of assets were appropriate, but that these orders would only become enforceable once all interested parties had been served. The court emphasised the importance of ensuring that all parties with a legitimate interest in the liquidation were given the opportunity to be heard and to participate in the process. The liquidators were directed to take all necessary steps to ensure that this requirement was met.