Cadiz Waterworks Co v Barnett, 1874, LR 19 Eq 182
Citation:Cadiz Waterworks Co v Barnett, 1874, LR 19 Eq 182
Link to case on WorldLII (Referenced).
Rule of thumb:If a bill is validly disputed, can insolvency proceedings be commenced? No, an actual Court action has to be raised & not a debt action – a debt action is only raised where no reasonable excuse for non-payment is made.
Judgment:
Malins VC, ‘... it is not a remedy intended by the legislature, or that ought ever to be applied, to enforce the payment of a debt where these circumstances exist – solvency and a dispute’.
Warning: This is not professional legal advice. This is not professional legal education advice. Please obtain professional guidance before embarking on any legal course of action. This is just an interpretation of a Judgment by persons of legal insight & varying levels of legal specialism, experience & expertise. Please read the Judgment yourself and form your own interpretation of it with professional assistance.