Reasonable Cause for Late Return: penalty under section 271(1)(c) unsustainable where disclosure, audit filing and voluntary offer showed no concealme...
A prior Section 95 application had already triggered the statutory interim moratorium, so a later personal insolvency application filed during that subsisting moratorium was non-est in law and could not create a fresh Section 96 bar. On that basis, the creditor's second application was maintainable and its admission was upheld. The personal guarantor also remained liable because the guarantee was a continuing one, expressly unaffected by any change in the constitution of the borrowers, and the liability was co-extensive with the principal borrowers until full repayment. The plea that the change in borrower entity discharged the guarantor was rejected.
A prior Section 95 application had already triggered the statutory interim moratorium, so a later personal insolvency application filed during that subsisting moratorium was non-est in law and could not create a fresh Section 96 bar. On that basis, the creditor's second application was maintainable and its admission was upheld. The personal guarantor also remained liable because the guarantee was a continuing one, expressly unaffected by any change in the constitution of the borrowers, and the liability was co-extensive with the principal borrowers until full repayment. The plea that the change in borrower entity discharged the guarantor was rejected.
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