Two joint defendants (Company A & B) had a judgment against them which ordered them to pay an x amount of money . Further it said in the order that the defendants shall pay the claimant’s costs. The claimant threatened both parties (A & B) with bankruptcy proceedings if they didn’t pay the damages. Note, they did not ask costs. However, we, one of the defendants (A) put in an appeal damages, which has yet to be decided. The claimant went ahead and started a winding up petition against this defendant (A) in July 2013. This winding up petition was adjourned a total of 8 times due to the appeal yet to be decided. A did try to set aside the winding up petition but there was either never enough time court or it never came to the actual hearing. Now it came to A’s attention that in or before July 2013 the other defendant (B) actually did pay the amount x and did pay the claimant’s cost. This was accidently revealed to us by Company B. B told us that they were promised in case of a successful winding up petition claim against us, they would get half of their money back from the Claimant. We asked written confirmation but B never gave one. However going thru previous correspondence it appears indeed that company B paid damages and cost. Now to our questions: 1. Was the claimant allowed to start a winding up petition even if they have been paid damages and cost by the other defendant? 2. Is it allowed to make a deal with one of the defendants (B) as mentioned above? 3. Is it aloud that a winding up petition is adjourned 8 times? In the same period the winding up petition issued was listed at the Companies Court between a total of 45 times.
Isn’t that an abuse of process?
Thank you help. Louise
my name is ***** ***** I will help you with this.
1. If they have received the full Judgment order they are NOT entitled to START the petition.
2. Yes its allowed to make a deal as the debt is joint and several
3. Yes the winding up is at the discretion of the Court
Can I clarify anything about this today please?
Could we go ?
Unless the petition was granted then no. You would be entitled to your legal costs of defending it, but not damages
Does that clarify?
Yes, thank you.