A warning on the use of statutory demands in construction contracts
Statutory demands have often been used within the Construction industry as a means of "extracting" payment. We all know that Insolvency Procedures are not a substitute for debt collection and if so used are an abuse of the court process. Further if the debt claimed is disputed, any subsequent winding up petition presented to court may be dismissed with costs. In one recent case, the court went even further.
Read about this in more detail here.