Askews Legal LLP Cuts Through ‘Cloud of Objections’ in High Court Insolvency Win
Askews Legal LLP is pleased to announce its successful representation of Justa Limited in the High Court case of Re SKS Justa & Co Ltd & SKS Business Services Ltd [2025] EWHC 2120 (Ch), a significant decision handed down by Deputy ICC Judge Arumugam on 8 August 2025.
The case arose from a commercial dispute following the sale of an accountancy practice. Askews Legal LLP represented Justa Limited, who served statutory demands on the purchasers – SKS Justa & Co Ltd and SKS Business Services Ltd – for deferred consideration under an Asset Purchase Agreement (APA). The Applicants sought to injunct Justa Ltd the Respondent to prohibit the presentation of a winding up petition, raising multiple factual and legal objections and alleging inter alia breaches of directors’ duties.
After a contested hearing, the Court found that none of the Applicants’ arguments amounted to a genuine dispute on substantial grounds. The Judge held that the deferred consideration, had been validly agreed under a mechanism set out in the APA. Attempts to challenge the figures retrospectively were dismissed as implausible and unsupported by the contemporaneous evidence.
In a robust judgment, Deputy ICC Judge Arumugam emphasised that the insolvency court is well-equipped to dismiss contrived or unsubstantiated disputes, particularly where the documentary trail clearly supports the creditor’s position. The Applicants’ objections were described as a “cloud of objections” raised to “obfuscate the real issues,” and the application was dismissed in full.
This decision serves as a good reminder that raising disputes, without credible evidence or contractual foundation, will not suffice to defeat a statutory demand or contest a winding up petition. The Court will look closely at the substance and timing of such objections, especially where contemporaneous documents tell a clear story.
We are proud to have supported Justa Limited in achieving this outcome and would like to thank Kuljeet Sandhu and Harvin Dhillon of Askews Legal LLP and counsel Ali Tabari of St Philips Chambers, who demonstrated exceptional advocacy in the preparation and presentation of the case, delivering submissions with clarity, precision, and consummate professionalism. The full Judgment can be read: SKS Justa & Co Ltd & Anor v Justa Limited – Find Case Law – The National Archives
