All your resources at your fingertips.Learn More
(Court of Appeal, Etherton LJ, 15 February 2012)
Etherton LJ refused permission to appeal the decision of Norris J dismissing an application for an injunction to restrain the presentation of a winding-up petition. Since a judgment debt was not paid or satisfied until the judgment creditor was in possession of cleared funds, interest had continued to run on the outstanding liability owed by the creditor until the cheque payment had not cleared through the company's account (and not the date on which it was sent to the petitioner), by which date the interest due exceeded £750.
However, the judge opined obiter that the threshold for establishing that a debt is disputed on substantial grounds in the context of a winding-up petition is ‘not a high one' for restraining the presentation of the winding-up petition, and may be reached even if, on an application for summary judgment, the defence could be regarded ‘shadowy'.
"BPIR is an excellent series, of interest to both corporate and personal insolvency lawyers,...