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Tom Morris has successfully represented the respondent lender in the Court of Appeal, securing a pivotal judgment on the application of breathing space moratoria under the Debt Respite Scheme. This important decision clarifies the scope and legal interpretation of protections afforded to individuals in debt, with implications for creditors, insolvency professionals, and financial institutions.
The Court of Appeal in Seculink Ltd v Forbes has dismissed the borrower’s appeal against the decision of Sir Anthony Mann ([2025] EWHC 524 (Ch)) that capital in arrears is not a moratorium debt.
In a judgment handed down today (6 June 2025) (alongside the appeal in Interbay Lending Ltd v Forbes), Lord Justice Zacaroli (supported by Lord Justices Baker and Males) held that under the Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020, only arrears of instalments can be moratorium debts, so that capital which has been called in is always a non-eligible debt and outside the protection of a moratorium. Zacaroli LJ had earlier dismissed the debtor’s application for permission to appeal against a different decision of Sir Anthony Mann on various other grounds.
The decision brings certainty to this contentious issue and will come as a welcome relief to lenders and creditors alike.
Click here to read the judgment.
Tom Morris represented the successful respondent in the Court of Appeal, having also acted for the successful appellant in the High Court appeal on this and various other grounds. Tom was instructed by David Smith and Neli Borisova of JMW Solicitors LLP. Martin Westgate KC and Daniel Clarke of Doughty Street Chambers acted for the appellant.
