Legal News

Repayment clauses and disputed debts (JT Developments v Secretary of State for Education)

Published on: 24 November 2021
Published by: LexisPSL
  • Repayment clauses and disputed debts (JT Developments v Secretary of State for Education)
  • What are the practical implications of this case?
  • What was the background?
  • What did the court decide?
  • Case details

Article summary

Restructuring & Insolvency analysis: This decision concerns the grant of an injunction to restrain a winding-up petition disputed on substantial grounds. The Secretary of State for Education (acting through the Education and Skills Funding Agency (ESFA)) sought to recover payments made to the applicants for the delivery of apprenticeships. The contract between the parties empowered the ESFA to recover funding where certain applicable provisions were not complied with. The ESFA invoiced the sums claimed following an audit report, which offered no opportunity to the applicants to either contribute to the process or dispute its conclusions. The applicants argued that the ESFA had failed to comply with the contractual provisions dealing with repayment. The judge, considering the contractual provisions, held that there was genuine dispute on substantial grounds and granted the injunction. Written by Iqbal Mohammed, barrister at St Philips Chambers. or take a trial to read the full analysis.

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