Barker v Baxendale-Walker

Bankruptcy – Petition. There was no jurisdiction to stay or dismiss a bankruptcy petition based on a judgment debt, under r 10.24(2) of the Insolvency Rules 2016, SI 2016/1024, unless there was a pending appeal where permission had been given or no permission to appeal was required (an automatic right to appeal). According, the respondent solicitor (the debtor) was not entitled to an order dismissing or staying a bankruptcy petition presented by his former client, in circumstances where the debtor's application to the Supreme Court for permission to appeal (concerning a judgment debt entered in respect of the petitioner's underlying claim) was pending. The Companies Court further held, applying Henderson v Henderson[1843-60] All ER Rep 378, that the debtor's cross-claim, which had not been raised in the petitioner's original claim or during the appeal to the Court of Appeal, Civil Division, was an abuse of process.

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