3 Apr 1985
RE RITE-TEX GARMENT FACTORY
- Citation
- RE RITE-TEX GARMENT FACTORY
- Court
- Court of Appeal
- Case number
- CACV25/1985
Where a debtor raises a genuine, substantive dispute about the petitioning creditors' debt and the petitioners have not discharged the burden of proof to show assets will yield the 15% dividend, the court should ordinarily grant a stay for trial of the disputed debt rather than proceed to make a receiving order; the 15% calculation is applied after deducting preferential claims and relates to unsecured creditors only; the receiving order was set aside and a limited stay ordered.