The appellant challenged a formal statutory demand which had led to his bankruptcy. The demand had included the anticipated cost of realising the charged property, and also had been inflated to allow for extra costs of dealing the appellant who was perceived to be recalcitrant and unco-operative.
Held: The statutory demand could only include sums due at that time to the bank, and had been included wrongly. Similarly it was inappropriate to try to include speculative costs. At later stages, such contingent liabilities might properly be allowed for (but still excluding addition costs associated with the character of the bankrupt). The court had a discretion as to whether to allow cross examination.
Judges:
Ward, Carnwath LJJ, Newman J
Citations:
[2003] EWCA Civ 714, Times 27-May-2003, Gazette 17-Jul-2003, [2003] BPIR 1373
Links:
Statutes:
Insolvency Rules 1986, Insolvency Act 1986
Jurisdiction:
England and Wales
Citing:
Applied – Platts v Western Trust and Savings Ltd CA 9-Jun-1993
The court examined the extent of the Judge’s discretion on hearing an application to set aside a statutory demand. When property was valued for the purposes of a statutory demand, it should be as on a forced sale. A ‘forced sale’ was taken as one . .
Cited – Re a Debtor ChD 1994
The ordinary procedure of an insolvency involves two-stage, a statutory demand followed by a bankruptcy petition. The service of a ‘statutory demand’ in the prescribed form is simply one means of establishing ‘inability to pay’. The procedure is . .
Cited – Re Button 1905
A secured petitioner’s estimate of the value of his property was challenged.
Held: The petitioner’s estimate was made ‘at his own risk’, in that, if at undervalue, he would still be bound by it in the bankruptcy; but that, provided the . .
Cited – Royal Bank of Scotland v Farley CA 1996
If it can be demonstrated by evidence subsequent to the bankruptcy order, that the debts on which the petition was founded did not exist, then it would be right to say that there was a ground existing at the time the order was made on which it . .
Cited – Holder and Others v APC Supperstone and Others ChD 24-Nov-1999
Tenants obtained a charging order against their landlord, and, after his bankruptcy, incurred substantial costs defending their charge against other claimants. The trustee declined to allow payment of the costs.
Held: The costs were properly . .
Cited – In re a Debtor (No 1 of 1987), ex parte the Royal Bank of Scotland CA 1989
A statutory demand as served showed an incorrectly calculated sum owed and was in the wrong form.
Held: The application to set the demand aside was refused. A statutory demand should not be set aside for a mere technicality.
Lord Justice . .
Lists of cited by and citing cases may be incomplete.
Banking, Insolvency
Updated: 23 November 2022; Ref: scu.182349
