Dillon LJ said: ‘if a debt is due and an invoice is sent and the debt is not disputed, then the failure of the debtor company to pay the debt is itself evidence of inability to pay’. The fact of solvency was not itself an answer to a petition based on an undisputed or indisputable debt.
Disputing the debt for a thoroughly bad reason will not prevent an order being granted: ‘the reason for non-payment has to be substantial [it] is not enough if a thoroughly bad reason is put forward honestly’
Judges:
Dillon LJ
Citations:
[1990] BCC 44, [1990] BCLC 216, (1990) 8 ACLC 529
Jurisdiction:
England and Wales
Cited by:
Cited – Marine Trade Sa v Pioneer Freight Futures Co Ltd Bvi and Another ComC 29-Oct-2009
The parties stood to make substantial losses against each other under contracts for differences after the dramatic fall in the freight market in the financial turmoil of late 2008. . .
Lists of cited by and citing cases may be incomplete.
Contract, Insolvency
Updated: 23 July 2022; Ref: scu.640547