Oliver Caplan, head of 18 St John Street’s Business and Property Department, has an article published on Lexis+ – Setting aside statutory demands – relevant considerations as to cross-claims, abuse and stifling (Ezair v Rena Properties Ltd and others [2025] EWHC 3627 (Ch))
Upon the case the High Court refused to set aside a statutory demand founded on an unpaid costs order, holding that no qualifying cross-claim existed under rules 10.5(5)(a) of the Insolvency (England and Wales) Rules 2016 (IR 2016) where the alleged claim did not lie against all petitioning creditors.
The court further declined relief under IR 2016, r 10.5(5)(d), finding no abuse of process or real risk of stifling. It emphasised that ordinary enforcement of a costs debt will not be impugned absent cogent evidence of improper purpose, and that assertions of inability to pay must be supported by financial evidence. The decision underscores the limits of the court’s discretion and the need for a fully substantiated case when invoking cross-claims or stifling arguments.
The Court can be accessed by Lexis+ subscribers by clicking the link below:
For more information on Oliver Caplan please contact a member of our Business and Property Clerking Team on 0161 278 8261 or email businessproperty@18sjs.com