Date: 5th August 2010 at 4:15pm
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After hours of deliberating over his decision Mr Justice Mann has decided not to allow the HMRC plea to overturn the CVA.

The case however will not now go to the Court of Appeal tomorrow as the HMRC have decided against that course of action.

Mr Justice Mann said: “I propose to find in favour of the company administrators and dismiss the application of HMRC.”

The judge said the proposed CVA would stand.

In his verdict Mann said ‘I find that none of the five heads of attack by HMRC amount to unfair prejudice nor have they been materially affected.

‘In my view, HMRC will not be worse off by the situation left by the CVA bearing in mind what the alternatives could be for the club.

‘Those alternatives are liquidation, or expulsion from the Football League or worse, bearing in mind the loss of a lot of their assets.’

The judge said that without the Company Voluntary Agreement, there was no hope of keeping the club afloat. He went on: ‘There is no worthwhile way of money coming into the club other than by the CVA.’

He said that in his opinion Balram Chainrai was the only possible new owner.

He said: ‘Mr Chainrai was the owner of the club at the time of its demise and he is the only possible new owner now. There is no reason to suppose there is anyone else interested at all that would keep the club’s status in the Championship.’

In a statement, HMRC said: ‘HMRC is naturally disappointed not to have won this appeal and we can confirm that we do not intend to appeal.

‘Our aim when pursuing debt of any kind is to achieve a fair outcome for the taxpayer and we will take this forward in the wider context of the football industry through separate and outstanding legal proceedings over the status of the so called “Football Creditors Rule.

‘This is an important and complex judgment and until we have had the opportunity to study it in detail we can’t comment further.’

After the verdict ewas announced Pompey’s administrators immediately asked the court for £230,000 costs from the taxman.