UK: Waste management licence

United Kingdom
24/11/1999
Download PDF

In a further case regarding the question of whether a waste management licence is “property” after the company has been liquidated (see July 1999 Environment Law Bulletin, Section 1), an Official Receiver has been entitled to disclaim a waste management licence as onerous property under Section 178 of the Insolvency Act 1986. Celtic Extraction Limited and Bluestone Chemicals Limited held waste disposal site licences under Section 35(12) and 77(2) of the Environmental Protection Act 1990. Both companies went into compulsory liquidation and the Official Receiver became the liquidator. The Environment Agency required certain works to be carried out at both sites under the terms of the licences. The Official Receiver asked the Agency to terminate the licences on the basis that the companies had no assets. The Official Receiver applied to the court for directions and the judge held that the licences were property within Section 436 Insolvency Act 1986, but that they could not be disclaimed by the liquidator under Section 178 because that would be inconsistent with the terms of the Environmental Protection Act. The appeal was allowed, the judge declaring that the Official Receiver was entitled to disclaim the waste management licences. This decision effectively overrules Re Mineral Resources Ltd and casts doubt over the decision in Re Wilmott Trading Ltd (No.2) (see July 1999 Environment Law Bulletin).
(Official Receiver as Liquidator of Celtic Extraction Limited and Bluestone Chemicals Limited, CA, 14 July 1999)

Search Filters

Advanced Search

Related content