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Rebecca Farrell has written an article for LexisNexis regarding a landlord’s winding-up petition for £167,593.41 against a company incorporated to run a school which was dismissed. The court found there was a strongly arguable case that the bulk of the petition debt did not represent rent arrears payable, but rather a purchase price payable for shares in the company. The court also accepted that there was a cross-clam with a real prospect of success in a sum of at least £546,000 in general damages and potentially exemplary damages as well. The company had raised a strongly arguable case that the purported forfeiture of the lease by physical re-entry between the first and second hearing of the petition (causing the abrupt closure of the school) was unlawful, amongst other arguments in the cross claim.

This article was first published by LexisNexis on 23 July 2024.