Re A Company (No 008654 of 2017)

Company – Winding up. The approach in Re Douglas Griggs Engineering Ltd[1962] 1 All ER 498 could no longer stand with the decision of the Court of Appeal, Civil Division, in Re Bayoil SA [1999] 1 All ER 374. Applying the latter case to the facts of the present case, the applicant company had a bona fide cross-claim on substantial grounds which made it inappropriate to wind it up, following its non-payment of a judgment debt in favour of the respondent petitioner. The judgment debt arose out of a building contract dispute between the parties. The Chancery Division further ruled that there were no special circumstances to take the case outside the general rule that a winding up petition should be dismissed if there was a cross-claim, which had been put forward bona fide on substantial grounds, in an amount exceeding the petition debt. Accordingly, the petition to wind up the company was dismissed.

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