Promontoria (Chestnut) Ltd v Bell and another

Insolvency – Statutory demand. The deputy judge had correctly concluded that the third-party charges provided by the respondents for the indebtedness of a company (of which they were directors and shareholders) to the creditor company were security in respect of the debt upon which the statutory demands had been based, within the meaning of r 6.5(4)(c) of the Insolvency Rules 1986, SI 1986/1925, interpreted in accordance with its underlying rationale and purpose. Accordingly, the Chancery Division dismissed the creditor's appeal against the deputy judge's decision to set aside the statutory demands served by the creditor against the respondents.

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