HM Revenue & Custom‘s (HMRC) winding up petition issued against Cardiff Blues has been dismissed by an insolvency judge at the High Court after the outstanding tax liability was paid in full by the rugby club
Why did HMRC issue a winding up petition?
HMRC were owed sums by the club, whom had allegedly not paid the debt due to the tax authorities in 10 months. The club claim that payment could not be made as there was a delay in receiving “scheduled incoming monies.”
HMRC sought to wind up the company under section 122(1)(f) of the Insolvency Act 1986 as the club had in that time become unable to pay its tax debt.
Why was the winding up petition dismissed?
The winding up petition was dismissed as the club paid the debt off in full.
On what grounds can a company oppose a winding up petition?
- the debt alleged in the demand to be owing is genuinely disputed on substantial grounds by the company;
- the company has a genuine right of set-off against the creditor which exceeds the amount claimed in the demand; or
- in certain other limited circumstances (for example such as Jurisdiction, Company likely to become insolvent, Technical or procedural error or Delay).
What is the process to seek a dismissal of a winding up petition?
The procedure to oppose a winding up petition is to file a witness statement in opposition in court not less than five business days before the date of the hearing of the petition (rule 4.18(1), Insolvency Rules). A copy of the evidence must also be sent to the petitioning creditor as soon as reasonably practicable (rule 4.18(2), Insolvency Rules).
The company is entitled to appear at the hearing of the petition and to oppose the making of a winding up order.
It is usual for a company to instruct solicitors and/or counsel to appear on its behalf at the hearing.
Instruct Specialist Winding Up Petition Lawyers
We provide a no cost initial case review to establish whether or not we can help you. We are a specialist City of London law firm made up of Solicitors & Barristers and based in the Middle Temple Inns of Court adjacent to the Royal Courts of Justice. We are experts in dealing with matters surrounding insolvency in particular issues. Our team have unparalleled experience at serving statutory demands, negotiating with debtors/creditors, setting aside statutory demands and both issuing and defending winding up petitions vigorously at the Royal Courts of Justice (Rolls Building), or the relevant High Court District Registry or County Court with jurisdiction under the Insolvency Rules.