Black v Sale Service & Maintenance Limited

Black v Sale Service & Maintenance Limited [2018] EWHC 1344 (Ch) determines that the decision to dismiss an individuals Application to set aside a Statutory Demand was incorrect.

The High Court has determined that the District Judge’s decision was wrong on the basis that the debtor had further unconsidered evidence to establish a counterclaim which was not considered at a Hearing, regardless of the fact that this Hearing was only intended to be a Directions Hearing lasting only fifteen minutes.

It was held that this was a serious procedural error and although it was not possible for the District Judge to consider the evidence provided by the Debtor in the time given in the Directions Hearing, the debtor deserved this evidence to be considered.

As a result, the High Court proposed to order a further Hearing with a time estimate of two and a half hours once the debtor had filed a statement which detailed the new evidence the debtor expected to obtain and reasons for the delay in examining it.

This Judgment provides and important reminder that even Applications that may seem unlikely to succeed should be provided with a fair Hearing for the evidence to be considered. Furthermore, the facts of this case illustrate that an attempt to pay a debt is only first – hand evidence that a debt is owing and that any debtors seeking to set aside a statutory demand should expect directions from the Court at a first hearing, providing they establish a triable issue. It is also important to note that delays for failing to make such Applications and non-compliance of the directions set by the Court could incur severe sanctions.

Our specialist lawyers in our Dispute Resolution and Insolvency department at Chadwick Lawrence would be delighted to discuss matters with you to allow them to gain a complete understanding of how we can assist you or your business.

If you would like to receive some further information please call 0113 225 8811 or e-mail zoeallen@chadlaw.co.uk