Union Bank UK Plc v Pathak

MR JUSTICE BRIGGS: Ms Gibbons, on behalf of Mr Pathak, invites me to make an order authorising the presentation of a bankruptcy petition against her client, not forthwith but not earlier than 14 days hence. She submitted that her client had been seriously unwell and although now out of hospital, was still in a period of recuperation. Against that, Mr Allison submitted that this is a case in which there has of course been the best part of a year since the service of the statutory demand. Issues as to whether it was a good statutory demand having now been sorted out, nothing should stand in the way of his client obtaining that priority against dealings which the presentation of a petition achieves, as soon as possible.

The court plainly has a discretion as to when to permit a bankruptcy petition to be presented after dismissing an application to set aside a statutory demand, and in this case, that is a jurisdiction which I must consider, having allowed an appeal against the setting aside of that statutory demand. In my judgment the effect of allowing an appeal against the setting aside of a statutory demand is to produce, for the purposes of Mr Pathak, a new situation, he having until now from the date of the Chief Registrar’s judgment been in the more satisfactory position of having succeeded in setting the statutory demand aside.

In those circumstances it would, in my judgment, be appropriate to afford a short period of time to enable him, as Ms Gibbons submitted, to consider whether to make proposals for payment and having regard to his recent indisposition, it is appropriate, in my judgment, to give 10 days before a bankruptcy petition can be presented. I therefore so order.