Displacing the usual order for costs on a winding-up petition

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The petition debt, on which a winding up petition listed for hearing on 5 December 2018, was paid on 3 December 2018 by the company under protest with the company reserving its right to recover the payment.

In Re Nowmost the court explained that:

  1. When the company pays late, the usual practice is an order to pay the petition costs.
  2. The onus is on the company to displace the normal order.
  3. That does not have to be done by formal evidence, but preferable that it should be.
  4. It is for the court to decide if the usual order should be displaced.
  5. The court should be pragmatic in its approach to see if a quick solution can be arrived at, or invite a brief adjournment for material on costs disputes to be put in evidence.

In AM2PM Feltham Limited the court decided that the petition was justified, as part of the debt was due on any view, so there was no reason to depart from the usual practice and costs were awarded.

Reliance Wholesale Limited v AM2PM Feltham Limited [2019] EWHC 1079(CH).


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