Winding up petitions can be dismissed if the debt is subject to a genuine dispute or there is a counterclaim by the debtor against the petitioner. Our team deals with these types of situations very regularly - for both petitioners and companies on the receiving end. Whatever your position - it is vital to take the right action. Let us help.
As a general rule, a court will not make a winding up order so long as the company’s cross claim is genuine and based on substantial grounds.
- the court may also look at any delay by the debtor company in raising the issue of the cross claim;
- ff the debtor company raises the issue of a cross claim for the first time after the winding up petition has been presented, it can be held relevant to the question of how genuine and substantial that cross claim is.
If there is an apparent genuine and substantial cross claim, then
- the court will either adjourn the winding up petition to allow the cross claim to be heard properly in a court hearing or (more usually) dismiss the winding up petition;
- unless an undertaking is given not to advertise the winding up petition, the court will also grant an injunction on the application of a company subject to the winding up petition to prevent winding up petition advertisement in the London Gazette.
Francis Wilks & Jones is the county’s leading firm of winding up petition solicitors. Dealing with disputed winding up petitions can be complicated and need to be handled very carefully. Our team of experts can help. Don’t risk getting it wrong.
