Inter company Stat Demand

Discussion in 'Finance, Property, Law' started by BiscuitsAB, Mar 20, 2013.

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  1. BiscuitsAB

    BiscuitsAB LE Moderator

    Does anyone know how you set aside an company to company Statutory demand? is it a N244D?

    Any help appreciated, its not something I've dealt with before.

    AB
     
  2. Biscuits, sadly, I became quite familiar with this when my business went down in 2008.

    As far as I recollect, there is no procedure in a corporate insolvency get a Statutory Demand set aside. The only way to do it is by obtaining from the Creditor an undertaking not to petition for the winding up of the company on the basis of the Statutory Demand in question. If the Creditor won't make an undertaking, then the Debtor must go to court to seek an injunction preventing the Creditor from issuing a Winding up Petition.

    Seek the advice of an Insolvency Practitioner.
     
  3. BiscuitsAB

    BiscuitsAB LE Moderator


    Thanks mate. Looks like this is going to be a pain in the arrse. The "debtor" is being stiffed massively with a whole set of made up invoices!
     
  4. If he can prove that the invoices are false, he has a perfectly valid case to go to court and seek an injunction against the "creditor". Not cheap to do, but the court should award him costs. The alternative is to risk the creditor petitioning for a winding up order and then defending the petition in court.

    From experience, this is a horrendously stressful situation for a small business owner. It is also not uncommon; a large part of why my business failed was a vexatious claim from a much larger company. In the end, I walked away and used an Insolvency Practitioner to close it off.

    Good luck.