Statutory Demands – A Review Of Recent Decisions

INSOLVENCY – The bankruptcy division of Mauritian Supreme Court re-affirms the test to determine the existence of a substantial and genuine dispute when setting aside a statutory demand. In this article, we review the recent determinations of the Bankruptcy Division of the Supreme Court of Mauritius (Bankruptcy Division) in which it re-affirmed the tests to determine an application to set aside a statutory demand under section 181 of the Insolvency Act 2009 ('Insolvency Act').

In this regard, the Bankruptcy Division cited with approval the test which it laid down in Cargo Handling Corporation Ltd v Fast Shipping & Transportation Co. Ltd 2022 SCJ 419 (Cargo Handling case).

In the Cargo Handling case, the Bankruptcy Division confirmed that in order to succeed with its application to set aside a statutory demand, an applicant must go beyond a mere assertion that there exists a dispute on the existence of a debt.