Ciddy Ltd v Natalia [2025] EWHC 1616 (Ch) (04 July 2025)

Ciddy Ltd v Natalia [2025] EWHC 1616 (Ch) (04 July 2025)

The Debtor has established a substantial dispute regarding both the unfair relationship under the Consumer Credit Act and the unenforceability of the default interest provision as a penalty clause. Until County Court proceedings determine the actual sum due, there is no liquidated debt for bankruptcy jurisdiction....

Source-derived case information.

Citation
[2025] EWHC 1616 (Ch)
Parties
Petitioner: Ciddy Limited; Respondent/debtor: Anjana Natalia
Jurisdiction
England and Wales
Judgment Date
04 July 2025
Procedural Posture
Bankruptcy Petition / Final Hearing and Judgment
Outcome
Petition dismissed
Legal Topics
Bankruptcy Petition, Unfair Relationship Under Consumer Credit Act, Penalty Clauses, Default Interest, Loan Enforcement
Insolvency Consumer Credit Contract Bankruptcy Petition Unfair Relationship Under Consumer Credit Act Penalty Clauses Default Interest Loan Enforcement

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Parties

Ciddy Limited

Petitioner

Anjana Natalia

Respondent/debtor

Procedural Posture

Bankruptcy Petition / Final Hearing and Judgment

Legal Issues

  1. 1 Whether the loan agreement created an unfair relationship under sections 140A-140C Consumer Credit Act 1974
  2. 2 Whether the default interest provision constitutes an unenforceable penalty clause
  3. 3 Whether the bankruptcy petition should proceed given disputed debt

Ratio Decidendi

The Debtor has established a substantial dispute regarding both the unfair relationship under the Consumer Credit Act and the unenforceability of the default interest provision as a penalty clause. Until County Court proceedings determine the actual sum due, there is no liquidated debt for bankruptcy jurisdiction. The petition is dismissed.

Court Disposition

Petition dismissed

Orders

  • Bankruptcy petition dismissed
  • No bankruptcy order made