Statutory Demands - beware of deadlines!

The Supreme Court of Gibraltar has confirmed that the court does not have the power to extend the time for the filing of an application to set aside a statutory demand issued under the Insolvency Act 2011. 

A party that claims it is owned monies (the amount must be more than £750) is entitled to issue a statutory demand against the debtor. If the debtor does not apply to the court to set aside the demand within 21 days of being served, the court has no power to extend the time for doing so. 

In a short judgment (Rossocorsa Limited v Cascade Marine Limited [2024/COMP/001]), Mr Justice Yeats, confirmed that the provisions of the Insolvency Act 2011 are clear and that the court cannot extend time. The applicant sought to rely on the ability to apply for relief from sanctions under the Civil Procedure Rules but the court's view was that the “discretion to extend time under the CPR is overridden by the express statutory provision contained in section 142(3) [of the Insolvency Act 2011]”

The judgment is a reminder to any company or individual that is served with a statutory demand that it must deal with this quickly. 

Daniel Feetham KC (team Leader, Insolvency Team) and Darren Martinez (partner) deal with insolvency matters and can assist parties wanting to issue a statutory demand or a party who has been served with a statutory demand and wishes to apply to set this aside.