Remedying Defects In Compliance With The Companies Winding Up Rules

The Grand Court of the Cayman Islands recently delivered a judgment in In the matter of Pinnacle Global Partners Fund I LTD (FSD 231 of 2018 (RPJ), unreported 4 February 2019) where it adopted a pragmatic approach in exercising its discretion to allow the remediation of certain technical defects as to (non) compliance with the Companies Winding Up Rules, 2018 (the "CWR").

The case concerned a creditor's winding up petition presented in respect of Pinnacle Global Partners Fund I LTD (the "Company"); Counsel for the Company argued that, as a preliminary issue, the petition was defective because no hearing date had been fixed and endorsed on it when it was filed and served as required by CWR, Order 3, rule 5 (and that such defects rendered the petition a nullity and that the Judge had no discretion to remedy such defects).

In his judgment, Justice Parker held that non-compliance of this nature with the CWR does not nullify the proceedings and therefore the Court does have the power to remedy procedural defects, but emphasized the importance of preventing injustice and prejudice from occurring when the Court exercises its discretion in this...