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Restraining Winding-Up Proceedings in Favour of Arbitration: What is the Standard for Granting an Injunction?
Following service of a statutory demand, if no payment is received, a claimant can ordinarily commence winding-up proceedings against the respondent. However, if the debt is disputed and falls within the scope of an arbitration clause, the court ought rightly to grant an injunction to restrain winding-up proceedings.