The Commissioners for HMRC v Purity Limited

The Commissioners for HMRC v Purity Limited

There is no express or implied restriction in section 85 Finance Act 2022 preventing the company from raising public law defences in the winding up proceedings. The Insolvency and Companies Court is the proper forum to determine both jurisdictional and public law issues relevant to the petition. There is no justification for a stay pending judicial review as the IC Court can address all relevant matters and the petition is ready for trial.

Parties
Petitioner: The Commissioners for His Majesty’s Revenue and Customs; Respondent: Purity Limited
Jurisdiction
England and Wales
Judgment Date
22 November 2024
Procedural Posture
Public Interest Winding Up Petition / Ruling on Application for Stay of Proceedings
Outcome
Application for stay refused
Legal Topics
Winding Up on Public Interest Grounds, Jurisdiction to Raise Public Law Defences, Stay of Proceedings Pending Judicial Review, Interpretation of Section 85 Finance Act 2022
Insolvency Law Tax Law Administrative Law Winding Up on Public Interest Grounds Jurisdiction to Raise Public Law Defences Stay of Proceedings Pending Judicial Review Interpretation of Section 85 Finance Act 2022

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Parties

The Commissioners for His Majesty’s Revenue and Customs

Petitioner

Purity Limited

Respondent

Procedural Posture

Public Interest Winding Up Petition / Ruling on Application for Stay of Proceedings

Legal Issues

  1. 1 Whether the company can raise public law defences in section 85 Finance Act 2022 proceedings
  2. 2 Whether a stay of the winding up petition should be granted pending determination of judicial review proceedings

Ratio Decidendi

There is no express or implied restriction in section 85 Finance Act 2022 preventing the company from raising public law defences in the winding up proceedings. The Insolvency and Companies Court is the proper forum to determine both jurisdictional and public law issues relevant to the petition. There is no justification for a stay pending judicial review as the IC Court can address all relevant matters and the petition is ready for trial.

Court Disposition

Application for stay refused

Orders

  • The application for a stay of the winding up petition is dismissed.