Reliance Wholesale Ltd v AM2PM Feltham Ltd

Reliance Wholesale Ltd v AM2PM Feltham Ltd

The chief registrar erred in principle by making no order as to costs without having sufficient material to make a judicial decision. The petitioner was entitled to present the petition at least for the undisputed £6,000, and the ordinary order should be made for the company to pay the petitioner's costs.

Parties
Petitioner: Petitioner; Respondent: Company
Jurisdiction
England and Wales
Judgment Date
08 April 2019
Procedural Posture
Winding Up Petition (chancery Division) / Appeal Against Costs Order
Outcome
Appeal allowed
Legal Topics
Winding Up Petition, Costs, Abuse of Process, Bona Fide Dispute
Insolvency Civil Procedure Winding Up Petition Costs Abuse of Process Bona Fide Dispute

Case Brief

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Parties

Petitioner

Petitioner

Company

Respondent

Procedural Posture

Winding Up Petition (chancery Division) / Appeal Against Costs Order

Legal Issues

  1. 1 Whether the chief registrar erred in making no order as to costs after dismissal of the winding-up petition by consent following payment of the debt
  2. 2 Whether the petitioner was entitled to costs given the circumstances of payment and the existence of a bona fide dispute

Ratio Decidendi

The chief registrar erred in principle by making no order as to costs without having sufficient material to make a judicial decision. The petitioner was entitled to present the petition at least for the undisputed £6,000, and the ordinary order should be made for the company to pay the petitioner's costs.

Court Disposition

Appeal allowed

Orders

  • Company to pay the petitioner's costs of the petition, subject to detailed assessment if not agreed