News

A decision on the application for a new O-licence for 21 vehicles and one trailer by Brian Hill Waste Management has been reserved after arguments over whether a moratorium on legal processes exists once a company enters administration. At a Birmingham public inquiry last week, West Midland Deputy Traffic Commissioner Tim Hayden heard that in September 2007, Brian Hill Waste Management was formed. Shortly afterwards, Brian Hill Haulage & Plant Hire went into administration.

An agreement  was entered into with the administrators that the new company could use the chattels of the old company so that the business could continue. Two applications for an interim licence were refused and the new company warned that it could not use the old company's licence. For the two firms, Jim Marsh said it appeared that the administrators had not made a Regulation 31 application to enable the old licence to be continued to be used.

Director Robert McNaughton said he thought Waste Management was entitled to use the old company's licence as the management agreement entitled them to use that company's assets. The intent had been to operate lawfully as they had not thought they were doing anything wrong.

For the administrators, Allison Beard argued that the original licence could not be revoked without the permission of the administrators or the leave of the High Court, as under the 1986 Insolvency Act there was an automatic moratorium on any legal process once a company  was placed in administration. The Deputy TC is to announce his decision in writing at a later date.