The Court of Appeal recently attracted surprised comment at having refused to approve a Tomlin Order agreed at the conclusion of a mediation (A Mediation Setback, by Justin Michaelson, Legal Week, 19 September). But in a new and ingenious procedural move, the effect of that decision was reversed by the Vice Chancellor in Thakrar v Ciro Citterio Menswear plc on 1 October, 2002.
Sir Andrew Morritt VC held that the Tomlin order drafted at the end of the mediation was an unconditional and enforceable contract binding on the administrators of the company. The compromise was a genuine commercial transaction in good faith and within the powers of the administrators to conclude without court approval. A committee of creditors had already unanimously agreed to the terms of the deal.
