Bankruptcy petition refused applying the Turner principle—(Al Rostamani v El Haddad))
Restructuring & Insolvency analysis: The court made a bankruptcy order on a petition based on unpaid costs orders totalling £1,478,565, rejecting all grounds of opposition. Applying the Turner principle, the court refused to revisit cross-claims already rejected at the statutory demand stage. The petition was not an abuse of process—the petitioners had a proper purpose in seeking collective enforcement and having an independent trustee investigate the debtor’s claims. The court rejected arguments that bankruptcy would be ‘pointless’ despite the debtor’s alleged impecuniosity, noting the heavy burden of proving one is ‘too poor to be made bankrupt’ and the debtor’s admitted 51% stake in a Saudi company. Claims that costs orders were procured by fraud failed, particularly as the orders would have been made anyway due to the debtor’s deliberate failure to give full and frank disclosure. Written by Justin Perring, barrister at New Square Chambers.