Consequence of contempt

HMRC presented a petition in respect of a company for £7.7m of unpaid VAT.

The High Court appointed a provisional liquidator to collect and protect the business’s assets. The order stated that the liquidator was an officer of the court and preventing or impeding him in carrying out his duties would be a contempt of court.

Two defendants M and F were directors of the firm. A third defendant C was the company secretary.

The provisional liquidator an independent solicitor and a process server attended the business’s premises where M was served with documents in the presence of C including the order appointing the provisional liquidator.

The company made three payments to a supplier and the Revenue brought proceedings saying the sums had been handed over in contempt of court.

The defendants admitted to breaching the court order.

The High...