The Adjudication of Proofs of Debt in Liquidation: A Background

According to the High Court, when adjudicating proofs of debt, a liquidator acts quasi-judicially "according to the standards no less than the standards of a court or judge". That is an onerous standard for a liquidator, who is not legally trained and invariably carries out their function in an environment hampered with severe financial constraints. This article is the first part in a series of three that seeks to unpack and challenge the "quasi-judicial" characterisation given to a liquidator's function in adjudicating proofs. This first part sets out background to judicial and administrative powers and reviews jurisprudence concerning the proof of debt procedure that applies in corporate insolvency. The following parts will consider the effect of an adjudication, the impact of history on the characterisation of a liquidator's power, and the limitations on the power and obligations of liquidators.