Jurisdiction(s):
United Kingdom

Bankruptcy order made: Turner principle prevents re-arguing statutory demand issues; mixed motives not abusive; cross-claims must target all petitioners; no 'pointless' bankruptcy in Al Rostamani v El Haddad

Published on: 02 September 2025

Published by a LexisNexis Restructuring & Insolvency expert

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Article summary

Al Rostamani and others v El Haddad [2025] EWHC 2000 (Ch) What are the practical implications of this case?

Mixed motives and abuse of process

The ruling confirms that bankruptcy petitions are not undermined by mixed intentions, so long as at least one objective is lawful. In this case, using collective enforcement to obtain payment and appointing an independent trustee to probe the debtor’s assertions were legitimate aims, even if the petitioners could also gain an advantage as defendants elsewhere. Creditors can therefore take comfort that tactical benefits in related litigation do not taint an otherwise proper petition. The Shepherd principle remains authoritative—having a trustee impartially evaluate questionable litigation claims amounts to the estate’s ‘proper administration’.

‘Turner principle’ and statutory demand strategy

The court reiterated it need not rehear points already raised and dismissed on an earlier application to set aside a statutory demand; reopening requires a material change of circumstances. Practitioners should ensure every ground is properly evidenced and argued at the statutory demand stage. Where further material or developments are expected, consider whether to hold back and advance the full case at the petition hearing, rather than issuing a premature or incomplete set-aside application...

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