Article Thomson Reuters' Practical Law Arbitration Blog

How Will an Arbitration Agreement Influence the Court’s Approach in Relation to a Winding up Petition?

In this article for Thomson Reuters’ Practical Law Arbitration Blog, Kirkland partners Harkiran Hothi and Kate Stephenson discuss a recent judgment by the High Court related to a winding up petition presented with regard to a debt that is not admitted and where the debt is subject to an arbitration agreement.

The article provides background on the case, decision and issue, as well as key takeaways.

Telnic Limited v Knipp Medien und Kommunikation GmbH (Telnic v Knipp) adds to the line of authorities that the court will usually exercise its discretionary power to wind up a company (under section 122(1) of the Insolvency Act 1986 (IA)) in a manner that does not allow parties to circumvent an arbitration agreement to resolve disputed debts, unless wholly exceptional circumstances are found to exist.”

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This article appeared in its entirety in the August 27, 2020, edition of Thomson Reuters' Practical Law Arbitration Blog.