Introduction
It is trite law that where a petition debt is disputed in good
faith and on substantial grounds, the ordinary practice of the
Court is to dismiss or strike out the winding up petition. However,
this principle is more easily applied in theory than in practice.
As a result, the Grand Court of the Cayman Islands has observed
recently that "It is remarkable how much case law has been
generated in relation to a legal test which has essentially been
settled for many years" (Re Sky Solar Holdings
Ltd).
That body of case law has been swelled in 2020 by a number of
decisions of the Grand Court which provide further guidance as to
whether a petition debt is to be considered genuinely disputed on
substantial grounds, requiring that the creditor's winding up
petition be struck out for abuse of process.
