In the recent case of Sian Participation Corp v Halimeda International Ltd [2024] UKPC 16, the Judicial Committee of the Privy Council (the Board), handed down an important judgment concerning the ability of creditors to obtain a winding up order from the English courts on the ground that a debtor is unable to pay its debts, where the relevant debt arises from a contract subject to an arbitration agreement, or an exclusive jurisdiction agreement in favour of a foreign court.

In a judgment which overturned previous Court of Appeal authority (Salford Estates No.2), the Board’s decision stands to, generally, make it easier for creditors to proceed in such situations.

Although the case was an appeal from the BVI courts determined by the Board (and not the UKSC), it expressly directed, pursuant to its power to do so under Willers v Joyce (No2) [2016] UKSC 44, that the decision is also to represent the law in England and Wales.

We discuss the ruling in greater detail in an article by our R&I/Banking litigation team on our banking litigation blog, BankingLitigationLinks. Please click here for more.