Winding up petitions can be dismissed if the debt is subject to a genuine dispute or is there is misuse or abuse of them by a creditor. 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.
It is very important that winding up petitions are not used in a deliberately malicious manner or with bad intentions.
Winding up petition misuse is viewed very seriously by the courts. If a winding up order has been used in a “vexatious” or malicious way, then the debtor is perfectly entitled to make an application to court to have the Petition
- rescinded or dismissed from the court record; or
- seek an injunction to stop the petition being advertised in the London Gazette.
As part of this process the debtor can seek recovery of its legal costs from the petitioning creditor and in due course, may have a claim in damages if it has suffered loss as a result of the misuse of the winding up petition procedure.
Effect of a winding up order
A winding up petition can have a very drastic effect on a company or Limited Liability Partnership. If the winding up petition becomes common knowledge it can lead to
- the freezing of a company’s bank accounts;
- suppliers demanding cash on delivery;
- the inability to pay staff and/or other creditors; and
- could ultimately lead to the insolvency of the company.
If the recipient of a winding up petition believes it has been used in a malicious or vexatious manner, then immediate action is required to have the winding up petition rescinded following which a separate civil action in damages can be considered.
At Francis Wilks & Jones we have the expertise to help in these situations. We also have our own in house barrister able to attend court at a moment’s notice. We are minutes from the high court in London and have great experience in dealing with serious and time sensitive court applications such as these.
Francis Wilks & Jones is the county’s leading firm of winding up petition solicitors. We are experts in what we do with a combined experience of over 75 years in winding up petition cases. Our knowledge of the winding up petitions is second to none and our results excellent. Whatever your winding up petition enquiry, we can assist.
