Hammonds (A Firm) v Pro-Fit USA Ltd: ChD 17 Aug 2007

The claimant solicitors sought the winding up of its defendant company client for non-payment of fees including fees not yet delivered. The court refused to hold that the practices developed in relation to winding up should be imported into administration. The court considered what was meant by ‘creditor’. Warren J said: ‘a person is a ‘creditor’ within paragraph 12(1)(c) Schedule B1 so long as he has a good arguable case that debt of sufficient amount is owing to him (to adopt the words of Lord Denning in Claybridge Shipping). Thus, even in the case of a disputed debt, such a person may make an application for an administration order. It is then a matter for the discretion of the court whether actually to make an administration order. The court has jurisdiction to deal with the application without having to resolve the dispute about the debt.’

Judges:

Warren J

Citations:

[2007] EWHC 1998 (Ch), [2008] 2 BCLC 159

Links:

Bailii

Statutes:

Insolvency Act 1986

Jurisdiction:

England and Wales

Citing:

See AlsoHammond (A Firm) v Pro-Fit USA Ltd ChD 28-Jun-2007
Application for disclosure of documents. . .

Cited by:

CitedCorbett v Nysir UK Ltd ChD 31-Oct-2008
The applicant, a substantial creditor of the respondent sought the appointment of his agents as administrators. The respondent denied that it was insolvent, and claimed a set off as reason for non payment of its loan notes.
Held: The claimant . .
Lists of cited by and citing cases may be incomplete.

Legal Professions, Insolvency

Updated: 21 July 2022; Ref: scu.259428