Court ruling on UK insolvency case may weaken environmental protection

A recent Court of Appeal decision has given insolvency practitioners the go-ahead to disclaim waste management licenses held by companies in compulsory liquidation.


Continue Reading

Login or register for unlimited FREE access.

Login Register

In the case of Official Receiver as Liquidator of Celtic Extraction Ltd & Bluestone Chemicals, the Court of Appeal unanimously overturned an earlier decision that while waste management licenses were considered “property” under the Insolvency Act 1986, they could not be disclaimed because environmental protection should prevail even though it might interfere with the winding up of a company.

The Court of Appeal disagreed, stating that if Parliament had wished to exclude the operation of the Insolvency Act in this respect, it would have specifically stated so in the Environmental Protection Act 1990.

Paul Sheridan, environment law partner at Cameron McKenna, said, “Landfill operators may be worried that this decision could lead to distortion of trade if the decision makes it easier for cowboy operators to flourish. No doubt this will also result in the Environment Agency taking a closer look at the financial provision aspects of waste management licensing.”

© Faversham House Ltd 2022 edie news articles may be copied or forwarded for individual use only. No other reproduction or distribution is permitted without prior written consent.

Action inspires action. Stay ahead of the curve with sustainability and energy newsletters from edie

Subscribe