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ARTICLE · 01 MAY 2026

Arbitration Clauses Not a Shield Against a Winding-Up Petition

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The Irish High Court has ruled that arbitration clauses do not prevent creditors from presenting winding-up petitions when debts are genuinely disputed.

IrelandLitigation, Mediation & Arbitration

Executive Summary

In San Leon Energy plc v Brightwaters Energy Ltd [2026] IEHC 1, the Irish High Court (Mr. Justice Kennedy) confirmed that a broadly worded arbitration clause does not provide a shield against the presentation of a winding-up petition. Because a winding-up petition is not a legitimate means of enforcing a debt which is bona fide disputed, the presentation of a petition would normally be restrained (by the court granting an injunction) if the alleged debt is disputed in good faith and on substantial grounds.

The decision in San Leon confirms that Ireland’s arbitration framework, which is based on the UNCITRAL Model Law on International Commercial Arbitration, does not extend to winding-up petitions, which are a statutory remedy rather than a claim to determine the underlying debt.

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