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Péretié v Eden Farm: jurisdictional defences cannot set aside statutory demands; courts should allow time for anti-suit injunctions before bankruptcy petitions (England and Wales)

Published on: 24 July 2025

Published by a LexisNexis Restructuring & Insolvency expert
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Péretié v Eden Farm Srl [2025] EWHC 1349 (Ch) What are the practical implications of this case?

When parties disagree about the validity of a debt and a creditor opts to use bankruptcy as an enforcement route rather than issuing proceedings to test the debt, the first move is to serve a statutory demand. The court may set aside a statutory demand where there is a genuine triable issue that could reduce the purported liability below the bankruptcy threshold. However, if the arguable point is about jurisdiction, that cannot justify setting aside the demand, because only once a bankruptcy petition is presented must the creditor show that this jurisdiction is the proper one. As a result, a debtor relying solely on a jurisdictional defence has, until now, been unable to prevent a petition from being brought, which can have significant consequences for the debtor. This judgement creates a means for a debtor to obtain a court ruling on jurisdiction before any bankruptcy petition is presented...

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