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“Problems and pitfalls in disputing statutory demands: the recent case law”
A. Introduction
[IMG]file:///page1image9440[/IMG] [IMG]file:///page1image9600[/IMG] “...a creditor’s petition may be presented to the court in respect of a debt or debtsonly if, at the time the petition is presented —
4. From the creditor’s perspective, it can be seen that the statutory demand plays a‘positive’ and ‘negative’ role in this scheme.
“Problems and pitfalls in disputing statutory demands: the recent case law”
A. Introduction
- This is an edited version of a paper given to the District Judges’ Chancery Meeting heldat the Rolls Buildings, London, on 20 March 2014. It is intended to give a quickoverview of the procedure for setting aside statutory demands in bankruptcyproceedings, and then comment on some trends in the recent case law.
- In particular, it focuses on issues and developments arising out of the recent authoritieson two of the most commonly relied upon grounds for setting aside a statutory demand.It ends with discussion of the application of the ‘co-extensive’ principle, a novelapplication of the law that emerged from cases where guarantors sought to set asidestatutory demands served upon them.
B. The general framework
Grounds for a bankruptcy petition - The statutory demand is an integral part of the bankruptcy system. The grounds forpresenting a bankruptcy petition are as follows:
[IMG]file:///page1image9440[/IMG] [IMG]file:///page1image9600[/IMG] “...a creditor’s petition may be presented to the court in respect of a debt or debtsonly if, at the time the petition is presented —
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| (under section 268 below) in respect of the debt or any of the debts. (s. 267(2) IA 1986) |
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