A Company v The Respondent (A Company (Injunction to Restrain Presentation of a Petition), Re)

A Company v The Respondent (A Company (Injunction to Restrain Presentation of a Petition), Re)

The Applicant demonstrated a genuine and strongly arguable cross-claim in contract and misrepresentation, comfortably exceeding the undisputed sum of £16,889.25, with real prospects of success. The evidence established that a significant proportion of operatives supplied by the Respondent were underqualified, resulting in defective work and substantial losses to the Applicant. The statutory demand is therefore disputed on substantial grounds, and it would be an abuse of process to allow the Respondent to present a winding up petition.

Parties
Applicant: A Company; Respondent: The Respondent
Jurisdiction
England and Wales
Judgment Date
11 September 2024
Procedural Posture
Injunction to Restrain Presentation of a Winding Up Petition / Final Judgment on Application for Injunction
Outcome
Injunction granted restraining presentation of winding up petition
Legal Topics
Injunctions, Winding Up Petitions, Statutory Demand, Cross Claims, Misrepresentation, Breach of Contract
Insolvency Company Law Contract Law Injunctions Winding Up Petitions Statutory Demand Cross Claims Misrepresentation +1 more

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Parties

A Company

Applicant

The Respondent

Respondent

Procedural Posture

Injunction to Restrain Presentation of a Winding Up Petition / Final Judgment on Application for Injunction

Legal Issues

  1. 1 Whether the Respondent should be restrained from presenting a winding up petition based on a statutory demand disputed by the Applicant
  2. 2 Whether the Applicant has a genuine and substantial cross-claim exceeding the amount claimed in the statutory demand
  3. 3 Whether the Applicant's cross-claim meets the minimum evidential threshold

Ratio Decidendi

The Applicant demonstrated a genuine and strongly arguable cross-claim in contract and misrepresentation, comfortably exceeding the undisputed sum of £16,889.25, with real prospects of success. The evidence established that a significant proportion of operatives supplied by the Respondent were underqualified, resulting in defective work and substantial losses to the Applicant. The statutory demand is therefore disputed on substantial grounds, and it would be an abuse of process to allow the Respondent to present a winding up petition.

Court Disposition

Injunction granted restraining presentation of winding up petition

Orders

  • The Respondent is restrained from presenting a winding up petition against the Applicant based on any of the sums claimed in the statutory demand.
  • The court will hear submissions on costs at the handing down of the judgment.