Reliance Wholesale Ltd v AM2PM Feltham Ltd

Company – Winding-up petition. The petitioner's appeal against the chief registrar's order, dismissing its winding-up petition, with no provision for its costs, was allowed. The petitioner had alleged that the respondent company had failed to repay a loan. The company had disputed the alleged debt, but had later paid it, and both parties had agreed that the petition should be dismissed. The Chancery Division held that, it had been wrong in principle for the chief registrar to deny the petitioner its costs, in circumstances where there had been a dispute and where there had been arguments on either side. The court held that, on the facts, the petition had been justified and that the ordinary order should be made, namely that the company should pay the petitioner's costs of the petition.

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