Injunction to Prevent Presentation
Obtaining an injunction to restrain the presentation of your winding-up petition:
The presentation of a Winding Up Petition can have potentially life and death consequences for the reputation and survival of your company. Therefore, your company will need to decide very quickly how to respond to the statutory demand for debt in order to prevent the presentation of a Petition.
Our firm can help you decide the best way to dispute the debt, whether it be through a counterclaim or a cross-claim. It should be dealt with in a timely fashion and if money must be paid, it should not be left until presentation of the Winding Up Petition.
If however you have done all that you can to avoid the presentation of the Winding Up Petition but there is an unreasonable or unrelenting insistence on the part of the Creditor, then it is possible to apply to court for an injunction to prevent the presentation of the Petition.
In order to obtain an injunction from the court to prevent presentation of the petition, you will need to instruct a solicitor to draft a comprehensive letter of response to the statutory demand for the debt, which should set out the grounds for dispute. Your response should demonstrate reasonable and substantial grounds of dispute.
Other options we can consider in our response to the creditor is to request an undertaking not to present or advertise the petition without prior notice, and if not, to provide warning that if a petition is presented then an application will be made to strike it out as an abuse of process.
If a creditor still insists on presenting a Winding Up Petition then we can apply to the court for an injunction prevent such a presentation. You should be aware that a court will only consider an application for an injunction if you can present prima facie evidence of a genuine and substantial dispute of the debt or of the fairness of the Winding Up Petition.
These forms are available on the Insolvency Service website, but will also need to be corroborated by a witness statement by an officer of your company which we can assist with drafting, detailing:
- The grounds upon which the debt is disputed.
- Any evidence in the form of correspondence between the parties
- Financial summary of the company, including the balance sheets, forecasts etc.
Common grounds on which a debt can be disputed and an injunction granted are:
- The Petition is an abuse of process
- The Petition is bound to fail
- You company has a genuine counterclaim or cross claim that would reduce the debt to less than £750
- The Petition is unfair
- There is an ulterior motive behind the Petition other than for the purposes of genuinely seeking winding up
Our team of insolvency experts have years of experience dealing with winding-up petitions and injunction applications and are able to provide tailored advice and assistance in presenting your application to the court.