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ARTICLE · 28 SEPTEMBER 2026

Restraint And Validation: A High Bar

Mills & Reeve LLP
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Elevate Estates Management Ltd sought to restrain a winding-up petition based on rent arrears exceeding £836,000, arguing that substantial payments had not been credited and advancing a repair-related cross-claim exceeding £330,000. The court rejected both arguments, finding the alleged uncredited payments were unparticularised and the cross-claim lacked contemporaneous documentary evidence, ultimately dismissing the applications and awarding indemnity costs against Elevate.

United KingdomInsolvency/Bankruptcy/Re-Structuring

Elevate sought to restrain advertisement of a petition founded on rent arrears exceeding £836,000, later rising to more than £1.1 million, and sought a validation order under s.127 Insolvency Act 1986. It contended that substantial payments had not been credited and advanced a repair-related cross-claim exceeding £330,000.

The court rejected both arguments. The alleged "uncredited payments" were unparticularised, with no accounting records or other evidence identifying omitted payments. Equally, the purported cross-claim rested on internal documents unsupported by contemporaneous invoices, contractual entitlement or evidence that the works had been carried out. The only documented repair issues were worth approximately £18,000.

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