Companies House recorded Taylor & Sons as being wound up in 2009 when it was Taylor & Son in difficulty. Last year’s ruling said the error caused the company to go into administration but a High Court judge ruled on Wednesday it can be appealed.

In January 2015, Mr Justice Edis found Companies House owed a duty of care when entering a winding up order to take reasonable care to ensure it is not registered against the wrong company. He said Taylor & Sons had proved the reason it went into liquidation was because of an error made by Companies House.

Paul Rees QC, for Companies House, argued the judge’s decision set a dangerous precedent for the future, “opening the door” to similar claims.

Lady Justice Arden said: “Clearly this case has wide implications and there are compelling reasons why an appeal should be considered.” She granted permission to challenge the decision in the Court of Appeal.

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