Ludsin Overseas Ltd v Maggs

Insolvency – Statutory demand. Following a money judgment in its favour, the claimant creditor served a statutory demand on the defendant debtor and obtained an interim charging order over the defendant's interest in a property (the property). The deputy registrar set aside the statutory demand, having found that the property's value was such that the debt was fully secured. The claimant appealed. The Chancery Division, allowing the appeal, held that fresh evidence that after some six months' marketing of the property, no-one had been prepared to offer a certain price for it was highly persuasive if not conclusive evidence that it was not currently worth the price which it would have to achieve if the claimant's debt were to be fully secured. Accordingly the statutory demand should not have been set aside.

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