Howell v Lerwick Commercial Mortgage Corporation Ltd

Debt – Statutory demand. The claimant appealed against a decision of a district judge dismissing his application to set aside a statutory demand. The debt itself was not disputed but the claimant relied on a cross-claim which did not equal the debt but fell short of it by less than £750. The Chancery Division held that a statutory demand should not necessarily be set aside under the residual discretion in r 6.5(4)(d) of the Insolvency Rules 1986, SI 1986/1925 simply because the undisputed part was less than £750. On the facts of the present case, the appropriate course was not to set aside the statutory demand under r 6.5(4)(d) of the Rules.

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