Insolvency

The principles upon which to proceed in dealing with without notice applications for the appointment of provisional liquidators were, first, the appointment of a provisional liquidator was a most serious step and should be the subject of most anxious consideration. Second, the application was without notice and needed to be justified by exceptional circumstances. A judge should not entertain an application of which no notice had been given, unless either giving notice would enable the defendant to take steps to defeat the purpose of the remedy or there had been, literally, no time to give notice. Third, it was not a trial of the petition itself and, accordingly, it was proceeded upon a provisional and interim basis. Fourth, it was for the petitioner to show that it was likely to obtain a winding-up order on the hearing of the petition. That involved demonstrating that the petitioner was entitled to present the petition and that a material part of the petition debt was not capable of serious dispute.