Developstate Limited v Alexander Luxury (Yorkshire) Limited

Facts

Alexander Luxury (Yorkshire) Limited owned a property at 2 Southfield, Hessle, and engaged Developstate Limited to redevelop it and manage the works. No written contract was entered into; the parties proceeded on an "elemental breakdown" of the works agreed at £367,246 plus VAT, which the contractor maintained was a working estimate rather than a fixed price, with additional works to be agreed and invoiced as required. Thirty invoices were raised and paid. On 16 December 2025 the contractor raised invoices 31 to 34, totalling £27,341.80, which were not settled; a statutory demand followed on 24 December 2025, reissued on 8 February 2026 because the first was in the wrong company name. Mr Shepherd of the company responded that he was not refusing payment but that several items were disputed, incorrect or unauthorised. The company's solicitors terminated the contract by letter dated 18 February 2026. A winding up petition dated 11 March 2026 was presented, and on 23 March 2026 the company applied under rule 7.24 of the Insolvency (England and Wales) Rules 2016 to restrain advertisement and strike out the petition, relying on an alleged genuine dispute over the invoices and cross claims for defective and unauthorised works totalling £83,361.