| 24 February 1970|
February 24, 1970
|  Ch 465|
| Mathias and Davies (A Firm) v Down|
Lord Denning MR, Sachs LJ, Phillimore LJ
Court of Appeal of England and Wales
Re Barleycorn Enterprises Ltd  Ch 465 is a UK insolvency law case, concerning the priority of creditors in a company winding up. It was held that fees for liquidation came in priority to preferential claims and floating charges. This was overturned by the House of Lords in Buchler v Talbot, but reinstated by Parliament through an amendment to the Insolvency Act 1986 s 176ZA.
Re Barleycorn Enterprises Ltd Wikipedia
Barleycorn Enterprises Ltd had been put into compulsory winding up. The directors had employed Cardiff based chartered accountants, Mathias and Davies, to prepare a financial statement for the company. Their fee was £202 10s, and were approved by the official receiver.
However, the company liquidator argued that the accountants should only be paid after preferential creditors and debenture holders. In this case, there was no money left. The judge at first instance, Sir Owen Temple Morris QC, held that the accountants had priority. The liquidator appealed.
The Court of Appeal held that the accountants' fees fell under the expenses of liquidation. Lord Denning MR gave the first judgment.
Sachs LJ concurred.
Phillimore LJ agreed.