Petition — bona fide dispute as to debt — court would not make bankruptcy order against alleged debtor who could show with sufficiently precise evidence bona fide defence
B presented a bankruptcy petition against D as a guarantor of the debts of C based on an unsatisfied statutory demand. D denied liability.
Held, making the bankruptcy order, that:
The court would not make a bankruptcy order against an alleged debtor who could show with sufficiently precise evidence a bona fide defence at the petition stage. The threshold applicable to a bona fide dispute on a debt was higher than that in respect of a summary judgment application. Here, D had not discharged that burden in this case.
A definitive decision by the Court of Appeal as to the applicable threshold required to resist the making of a bankruptcy order would be welcomed.