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High Court grants application to dismiss bankruptcy summons brought by a debtor against the petitioning creditor, on the grounds that an issue arises for trial as to whether or not the issuance of the bankruptcy proceedings constitutes an 'action upon a judgment' in respect of a judgment debt which accrued in January 2012, and is therefore statute-barred by operation of the statute of limitations, or whether the summons is a 'process of execution' absolving it from the strictures of the law on the limitation of actions.
Bankruptcy - application to dismiss bankruptcy summons - application to issue fresh bankruptcy summons - whether judgment obtained against debtor is statute-barred and not properly obtained in this jurisdiction - whether issuing of bankruptcy summons does not constitute an action upon a judgment but is rather a process of execution and immune from statute of limitations - legal test on application to dismiss bankruptcy summons - whether issuance of bankruptcy proceedings is an execution on a judgment - real and substantial issue raised - whether issue stands some prospect of success - issue arises for trial - summons dismissed
Note: This is intended to be a fair and accurate report of a decision made public by a court of law. Any errors should be notified to the editor and will be dealt with accordingly.
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