Re Welsh Brick Industries Ltd, 1946 2 All ER 197, EWCA
Citation:Re Welsh Brick Industries Ltd, 1946 2 All ER 197, EWCA
Rule of thumb:What happens if a winding-up order is made for a debt which is very small relative to the financial size of a person or company? This will be dismissed as an abuse of process.
Judgment:
‘... considering whether or not the dispute is a bona fide dispute, or, putting it in another way, whether or not there is some substantial ground for defending the action... A petition presented ostensibly for a winding-up order but really to exercise pressure will be dismissed and under circumstances be stigmatised as a scandalous abuse of the process of the Court... If however, there was no reason to believe that the debt, if established, would not be paid, the petition was dimissed’. Lord Greene MR
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.