In re Claybridge Shipping - Lord Denning, M.R., Lord Justice Shaw and Lord Justice Dunn - C.A.

Disputed debt - Striking out creditors’ winding up petition - Court of Appeal reverse decision

It has been the practice of the Court to strike out a creditor’s petition for winding up a company if there is a bona fide and substantial dispute as to the debt on which it is based. The Court of Appeal however has allowed an appeal against the striking out of a creditor’s petition for the winding up of a Panamanian company.