Whether you are a creditor issuing the petition or a debtor on the receiving end of a winding up order – there are times when both sides will need more time to resolve their differences and try and sort the petition out. Our team can help you get extensions of time at court if needed.
Adjournment – the legal phrase for “requesting more time”
If a winding up petition has been served on a company, the clock starts ticking immediately.
According to the CPR 6.4(1), the winding-up petition must be served on the debtor company not less than seven business days before the date of the hearing. This means that the company must receive the winding-up petition at least one week before the scheduled court hearing.
If the winding up petition is not responded to, it can be advertised in the London Gazette just 7 days business days after the dated of service. If that happens it would very likely spell the end of the company’s ability to trade and lead to its liquidation.
The need for an adjournment (delay) of a winding up order
There are a number of reasons why an adjournment of the petition beyond the initial court date might be needed
- Often, a debtor company needs time in order to organise its affairs and arrange for a payment of the winding up petition debt. For example, it might want to offer a negotiated instalment settlement. If however, the court hearing date is getting near, the petitioning creditor might want to extend that date to allow more time for a solution to be found.
- No response from the debtor. If this happens, sometimes the creditor might not have done what is needed for the petition to be wound up at the first hearing date. So a delay is needed.
- Procedural irregularities. Sometimes there might be an issue with the documents and an adjournment is required
- Court inefficiencies. Sometimes the court will lose papers or not have things ready – so an order cannot be made.
All these will mean attending court and asking for more time. At Francis Wilks & Jones, we are able to arrange for a barrister to attend the winding up petition court and seek an adjournment of the winding up petition court hearing date. This will allow all the parties to the case more time to sort things out and settle the winding up petition debt.
Do both sides need to agree to an adjournment before one is granted?
On most occasions adjournments are dealt with by consent (ie both sides agree in advance) and therefore the winding up court hearing for the adjournment is relatively straight forward.
However in some circumstances, particularly with winding up petitions by HMRC, the petitioning creditor can take a harder line and in these cases, we can help prepare the necessary written evidence in advance of the court hearing to help persuade the court that further time should be given to allow the debtor company to try and organise payment of the debt and continue trading.
How the team at FWJ can help
Our experience. We have obtained adjournments 100’s of times. We know the relevant laws and procedures related to adjournments.
Proper presentation of grounds. We can make sure the judge is given the right evidence to allow the adjournment. We do so in a clear and persuasive manner, ensuring that the court understands the reasons for seeking the postponement.
Representation at the hearing. If the request for an adjournment is opposed by the other party, we can represent you to ensure we get the adjournment you need.
