It can be vital to get a winding up petition dismissed from court. If you are a creditor and have been paid, you dont want the petition supported by someone else as you might have to hand the money back. As a debtor, removal of the petition can stop a bank account being frozen and prevent huge reputational damage.
It is possible to withdraw a winding up petition from the court record in the event that the winding up petition debt is paid in advance of the winding up petition court hearing. This is always our aim.
- it is often very sensible to get a petition dismissed as soon as possible as it safeguards any money paid to creditor after the winding up petition has been issued;
- it helps avoids the unfortunate position of the winding up petition being supported by another creditor of the debtor and being taken over by that creditor who in turn winds up the company;
- if this happens, any money paid to the original petitioning creditor has to be paid back to the liquidator of the company as it is deemed a preferential payment.
At Francis Wilks & Jones we can help draft the application to withdraw the winding up petition and have the winding up petition dismissed from court within 24 hours of payment being received.
We can also assist a recipient of a winding up petition to have a winding up petition dismissed from court in circumstances where the debt is disputed or the winding up petition is an abuse of process.
Rule 7.13 of the Insolvency (England and Wales) Rules 2016 which deals with the withdrawal of a winding up petition is set out below
Permission for the petitioner to withdraw – the court rules
(1) The court may order that the petitioner has permission to withdraw the petition on such terms as to costs as the parties may agree if at least five business days before the first hearing the petitioner, on an application without notice to any other party, satisfies the court that—
(a) notice of the petition has not been given under rule 7.10;
(b) no notices in support or in opposition to the petition have been received by the petitioner; and
(c) the company consents to an order being made under this rule.
(2) The order must contain—
(a) identification details for the company;
(b) the date the winding-up petition was presented;
(c) the name and postal address of the applicant;
(d) a statement that upon the application made without notice to any other party by the applicant named in the order the court is satisfied that notice of the petition has not been given, that no notices in support of or in opposition to the petition have been received by the petitioner and that the company consents to this order; and
(e) an order that, with the permission of the court, the petition is withdrawn.
Our expert team of winding up petition solicitors at Francis Wilks & Jones are here to help you with your winding up petition questions. Our knowledge of winding up orders is second to none having dealt with thousands of such situations over the years. Our practical daily experience and legal expertise means that we can assist whatever the nature of your winding up petition claim.