P CASE TWO
Page 27

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Lack of financial proof leads to revocation
THE REVOCATION of the onevehicle licence held by Guildford Timber Frame by the South Eastern & Metropolitan Traffic Commissioner Philip Brown for failing to supply financial information has been upheld by the Transport Tribunal on appeal.
Accountants had informed the TC that the firm's creditors had approved a Voluntary Arrangement. The Traffic Area Office wrote requesting to see three months' bank statements and details of any overdraft_ Despite a letter of reminder, no reply was received and the licence was revoked.
In its appeal, the firm said it was trading under the Voluntary Ar
rangement, that it had obtained new work and that it was maintaining a positive cashflow, An e-mail confirmed a £500,000 overdraft.
The tribunal said that once the TC was informed of the Voluntary Arrangement, he was entitled to ask the firm for its financial status.
The overdraft information did not indicate if it was in existence at the time of the revocation. Evidence of an overdraft, on its own, was not sufficient. Where an overdraft had almost reached its limit, the full amount of the overdraft was not "available" since it was only the undrawn balance that could be used.
TCs required three months' bank statements in order to make an assessment of the amount of money available.
The TC's action was justified
The tribunal concluded that when faced with an operator with financial problems, who failed to respond to a request for information, that the TC had been right to revoke the licence,