Abstract:
Under the traditional approach, a debtor resisting winding-up proceedings must show that the debt is bona fide disputed on substantial grounds. However, an arbitral award is ostensibly “final and binding”. If an award creditor serves a statutory demand while the award is being challenged in the curial court, how is an award debtor to establish the requisite bona fide dispute on substantial grounds since an award cannot be challenged on its merits? This article considers how these issues may be resolved and suggests a practical way forward for both the award creditor and the award debtor.