Victory House General Partner Ltd v RGB P&C Ltd [2018] EWHC 1143 (Ch) (18 April 2018)

Victory House General Partner Ltd v RGB P&C Ltd [2018] EWHC 1143 (Ch) (18 April 2018)

Where a company subject to a winding up petition has a bona fide and substantial cross-claim exceeding the petition debt, the petition should be dismissed, even if the debt is a judgment debt, unless there are special circumstances. No such special circumstances existed here.

Citation
[2018] EWHC 1143 (Ch)
Parties
Applicant/respondent: Victory House General Partner Limited; Petitioner/respondent: RGB P&C Limited
Jurisdiction
England and Wales
Judgment Date
18 April 2018
Procedural Posture
Winding Up Petition (company) / Application to Strike Out and Restrain Notice of Winding Up Petition
Outcome
Petition dismissed
Legal Topics
Winding Up Petitions, Cross Claims, Adjudication Enforcement, Restitution, Judgment Debts
Insolvency Construction Law Contract Law Winding Up Petitions Cross Claims Adjudication Enforcement Restitution Judgment Debts

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Parties

Victory House General Partner Limited

Applicant/respondent

RGB P&C Limited

Petitioner/respondent

Procedural Posture

Winding Up Petition (company) / Application to Strike Out and Restrain Notice of Winding Up Petition

Legal Issues

  1. 1 Whether a winding up petition should be dismissed where there is a bona fide cross-claim exceeding the petition debt, even if the debt is a judgment debt
  2. 2 Whether the existence of a judgment debt precludes consideration of a cross-claim in winding up proceedings

Ratio Decidendi

Where a company subject to a winding up petition has a bona fide and substantial cross-claim exceeding the petition debt, the petition should be dismissed, even if the debt is a judgment debt, unless there are special circumstances. No such special circumstances existed here.

Court Disposition

Petition dismissed

Orders

  • The winding up petition is dismissed.