Re a Company (No.3113 of 2014)

Last week HHJ Hodge QC (sitting as a Deputy High Court Judge) refused an application for an injunction to restrain the presentation of a winding up petition for some £1.2 million due under four interim certificates issued under two JCT contracts following a 1 day hearing.  Adopting the dicta set out in the judgments in R & S Fire and Security Services Ltd v. Fire Defence Plc (2013) EWHC 4222 and Shaw v. MFP Foundations & Piling Ltd (2010) EWHC 9 the Court found that the certificates created a debt by reason of subsection 111(1) of the Housing Grants, Construction and Regeneration Act 1996 and that the cross claim raised by the Company was not “genuine or serious” or one which should lead it to exercise its discretion in favour of the application. The case is a rare instance of a Court refusing to restrain a winding up petition where the Employer’s application is supported by expert evidence as to the fact of the contractor’s defective workmanship and the Applicant’s overpayment.

Clifford Darton, instructed by Mr Tom Watkins of Watkins Ryder LLP appeared for the successful Respondent.