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Data Power Systems Limited and Or v Safehosts (London) Limited and Anor [2013] EWHC 2479 (Ch)

In this case the High Court refused an application for an administration order and instead appointed a provisional liquidator. There was no substantive evidence that one of the statutory purposes of administration could be achieved.

This case made it clear that where it is merely asserted that one of the statutory purposes of administration is achievable, that will not be sufficient evidence that one of those purposes is indeed achievable, even if the assertion is made by a qualified insolvency practitioner.

There was no application before the court for the appointment of a provisional liquidator, yet the court treated the administration application as a winding up petition, despite the fact that no application had been made for it to do so. It was able to do so due to its power to make such order as it thought fit under section 125 Insolvency Act 1986. Its power to do so came from the effect of paragraph 13 (1)(e) of Schedule B1 to the Insolvency Act 1986, which states that "On hearing an administration application, the court may treat the application as a winding up petition and make any order which the court could make under section 125.