Re Atlantic Computer Systems plc (No 1) [1990] EWCA Civ 20 is a UK insolvency law case concerning the administration procedure when a company is unable to repay its debts.
(3) In other cases when a lessor seeks possession the court has to carry out a balancing exercise, balancing the legitimate interests of the lessor and the legitimate interests of the other creditors of the company: see per Peter Gibson J. in Royal Trust Bank v Buchler [1989] BCLC 130, 135.
Lord Wilberforce adverted to the limitations of this metaphor in Science Research Council v Nassé [1980] AC 1028, 1067.
As already noted, the purpose of the prohibition is to enable or assist the company to achieve the object for which the administration order was made.
(4) In carrying out the balancing exercise great importance, or weight, is normally to be given to the proprietary interests of the lessor.
(5) Thus it will normally be a sufficient ground for the grant of leave if significant loss would be caused to the lessor by a refusal.
Section 11(3)(c) and (d) makes no provision for terms being imposed if leave is refused, but the court has power to achieve that result.
For example, the permanent loss to a lessor flowing from his inability to recover his property will normally be small if the administrator is required to pay the current rent.
In most cases this should be possible, since if the administration order has been rightly made the business should generally be sufficiently viable to hold down current outgoings.
(12) In some cases there will be a dispute over the existence, validity or nature of the security which the applicant is seeking leave to enforce.