Baker and another v LSREF III Wight Ltd

Insolvency – Statutory demand. The Bankruptcy High Court allowed the applicants' application to set aside statutory demands made on them following the failure of a venture to develop land. The applicants submitted that their relationship with their bank had been such to suggest the existence of a joint venture, and that there was a possibility of a cross-claim against the valuer of the company that they had formed. The court held that the debts, or their enforceability, were disputed on substantial grounds and/or the applicants appeared to have a cross claim that was likely to equal or exceed the amount claimed in the demands.

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