High Court dismisses TIB’s application compelling a bankrupt to draw down pension which is not yet in payment

  • Insolvency

The High Court considered in Horton v Henry whether it had power under s.310 of the IA 1986 to make an IPO in respect of a pension which is not in payment.

The earlier 2012 decision in Raithatha v Williamson concluded a TIB had power to claim a bankrupt’s lump sum entitlements under personal pension schemes not yet in payment.

However, the recent High Court ruling in Horton v Henry conflicted the earlier 2012 decision and decided that the pension benefits of a bankrupt cannot be subject to an IPO, where no election to draw the pension has been made prior to the bankruptcy order.

The general rule is that a Judge at first instance will follow another decision at first instance, unless the Judge is persuaded that the decision was wrong.

Permission to appeal has been granted to the TIB in Horton v Henry. Watch this space.