East Riding of Yorkshire Council as adminisitrating authority of the East Riding Pension Fund v KMG SICAV-SIF-SA
[2024] EWHC 1069 (Ch)
A Company, Re
8 May 2024
[2024] EWHC 1070 (Ch)
High Court
Someone tried to stop a company from being wound up because of an old debt from a foreign court. The judge said the debt was still valid, even though it wasn't officially recognized in the UK, and the time limit for claiming the debt hadn't run out. The attempt to stop the winding-up failed, but some other related issues will be looked at later.
Key Facts
- •Application to restrain presentation of a winding-up petition based on a Lebanese judgment for USD $776,907.51.
- •Judgment obtained in Lebanon on 13.7.2010, upheld on appeal in 2014 and 2017.
- •Applicant made a payment in Lebanon in 2022, which was later deemed invalid by a Lebanese court.
- •Applicant argues the debt is time-barred, the judgment debt satisfied, and the petition inappropriate.
- •Respondent argues that the debt is still owed and the application is an abuse of process.
Legal Principles
Injunction to restrain winding-up petition requires a substantial dispute about the debt.
Re Tallington Lakes Ltd, Argyle Crescent Ltd, Angel Group v British Gas
Foreign judgments can be recognized in England & Wales through statutory registration or common law.
Case Law
Under the Insolvency Act 1986, a debt needs to be owed, liquidated, unsecured, and the debtor unable to pay it for a winding-up petition.
Insolvency Act 1986, s267
Limitation Act 1980, s5 applies to simple contracts, s24(1) applies to actions on judgments.
Limitation Act 1980
Insolvency proceedings are not an 'action on a judgment', so s24(1) Limitation Act 1980 does not apply.
Ridgeway Motors v ALTS Ltd
A foreign judgment, even if unregistered, is a debt for insolvency purposes if it's final and conclusive.
Drelle v Servis-Terminal LLC
A foreign judgment is not a simple contract for limitation purposes.
Lenkor Energy Trading DMCC v Puri
Outcomes
Application to restrain the winding-up petition refused.
No substantial dispute about the debt; no limitation defense; debt incontrovertibly owed; no satisfaction of debt.
Issue of interest and costs adjourned to a further hearing.
Dependent on the outcome of the appeal in Lebanon regarding the validity of the payment.
Costs of the application adjourned to a further hearing.
Determination of costs influenced by whether the principal sum was paid.