Jurisdiction(s):
United Kingdom

Injunction to restrain winding-up petition refused: factual disputes and cash-flow solvency insufficient where undisputed debt exceeds £750; precise quantum unnecessary (England and Wales)

Published on: 04 April 2025

Published by a LexisNexis Restructuring & Insolvency expert

Legal News

Article summary

Portland Stone Firms Ltd v Albert Goodman LLP [2025] EWHC 702 (Ch) What are the practical implications of this case?

This decision clarifies the court’s approach to disputed debts at both petition and injunction stages. It stresses substance over form and centres on whether there is an indisputable sum above the statutory threshold.

Disputed facts do not, without more, require the petition’s dismissal; the court will interrogate the evidence in depth to see if the dispute is tenable.
At the interlocutory injunction stage, identifying an undisputed liability—or one not realistically disputable on substantial grounds—is sufficient for the petition to proceed.
Proof of cash flow solvency alone will not justify restraining the presentation or advertisement of the petition in such a scenario, even where the chances of convincing the court at the petition hearing that the company is insolvent are slim.
The court need not pinpoint the exact amount due, provided it is evident that more than £750 is owed and any arguable dispute would be unlikely to take the indebtedness below that threshold.
The court did not determine whether a winding‑up petition grounded on a statutory demand must be for a liquidated sum.

...

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

Popular documents

Using the Judicial College Guidelines to assess general damages in personal injury claims

When evaluating a general damages claim, the practitioner ought initially to refer to the Judicial College Guidelines (JCG)...

Tomlin orders in England and Wales: CPR guidance on drafting, confidentiality, approval, variation, enforcement, limitation, CCA issues, court-specific requirements, sample wording and precedents

This Practice Note This Practice Note reviews mechanisms used in settling litigation. A Tomlin order consists of a consent order paired with a schedule. It operates to stay proceedings on terms that have been agreed. The provisions contained in the schedule may remain confidential. This Practice Note describes the scope of confidentiality attaching to the schedule and sets out how it differs from a standard consent order. Sample wording for a Tomlin order is included, alongside links to precedents, as well as guidance on court approval. It also addresses varying, setting aside and enforcing a Tomlin order, including the considerations the court will take into account when handling applications for each. Further guidance is provided on interpreting and applying the relevant provisions of the CPR; however, some courts and divisions impose very specific requirements for both drafting and approval, and for approaching the schedule and confidentiality issues. Accordingly, you must consider the particular rules and court guide provisions in the forum where your claim is proceeding when drawing up the Tomlin order...

Precedent: Deed of Surrender of Lease with Optional Premium, Settlement and Release, Landlord, Mortgagee and Guarantor Consents, Reimbursement and HM Land Registry Provisions (England and Wales)

Date [ date ] Parties [ name of Landlord ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Landlord) [ name of Tenant ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Tenant) [ [ name of Guarantor ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Guarantor) ] [ [ name of Mortgagee ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Mortgagee) ] Definitions Within this Deed, the terms below shall be interpreted as follows: [ Annual Rent • the annual sum reserved under the Lease; ] [ Insurance Rent • the Tenant’s share of the Landlord’s costs of insuring the Property (as set out in the Lease); ] Lease • the lease of the Property dated [ date ], entered into between (1) [ the Landlord OR [ name ...

Precedent Statutory Declaration: Standard Wording under the Statutory Declarations Act 1835

I, [ name ], of [ address ], solemnly and sincerely state that: [ Matters to be verified, set out in numbered paragraphs ] I make this solemn statement in good conscience, believing it to be true, and pursuant to the provisions of the Statutory Declarations Act 1835. DECLARED at [ details ] this [ day ] day of [ month and year ] Before me ................................................................................ [ signature of the person before whom the declaration is made ] A [ commissioner for oaths OR [ solicitor OR [ insert other qualification ] ] authorised to administer oaths ]...