Martin v MclAren Construction Ltd

Martin v MclAren Construction Ltd

The statutory demand was set aside because no prior written demand was served under the guarantee, which is a contractual precondition for the debt to be 'payable immediately' as required by section 268(1) of the Insolvency Act 1986. The statutory demand could not itself constitute the required demand, and the respondent's failure to comply with this essential pre-requisite was a substantive defect, not a mere technicality.

Parties
Applicant: Ronald Martin; Respondent: McLaren Construction Limited
Jurisdiction
England and Wales
Judgment Date
29 July 2019
Procedural Posture
Insolvency Application / Ruling on Application to Set Aside Statutory Demand
Outcome
Statutory demand set aside
Legal Topics
Statutory Demand, Personal Guarantee, Bankruptcy Proceedings, Immediate Payment Requirement
Insolvency Law Contract Law Statutory Demand Personal Guarantee Bankruptcy Proceedings Immediate Payment Requirement

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 9 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Parties

Ronald Martin

Applicant

McLaren Construction Limited

Respondent

Procedural Posture

Insolvency Application / Ruling on Application to Set Aside Statutory Demand

Legal Issues

  1. 1 Whether the statutory demand should be set aside for failure to serve a prior written demand under the guarantee
  2. 2 Whether the debt was 'payable immediately' as required by section 268(1) of the Insolvency Act 1986

Ratio Decidendi

The statutory demand was set aside because no prior written demand was served under the guarantee, which is a contractual precondition for the debt to be 'payable immediately' as required by section 268(1) of the Insolvency Act 1986. The statutory demand could not itself constitute the required demand, and the respondent's failure to comply with this essential pre-requisite was a substantive defect, not a mere technicality.

Court Disposition

Statutory demand set aside

Orders

  • The statutory demand dated 25 October 2018 is set aside.