Sian Participation Corp (In Liquidation) vs. Halimeda International Ltd [2024] UKPC 16 (United Kingdom)

The UK Privy Council overturned longstanding English authority on the interplay between insolvency and arbitration. The court considered the issue on the correct test for the court to apply in exercising its discretion to order the liquidation of a company where the debt on which the application is based is subject to an arbitration agreement and is said to be disputed or subject to a cross-claim. 

The court held that the correct test is whether the debt is disputed on genuine and substantial grounds. If the test is not satisfied, the court shall exercise its insolvency jurisdiction to grant a winding-up or bankruptcy order, even if the disputed debt is subject to an arbitration clause or an exclusive jurisdiction clause in favor of foreign courts.