The English case Webster & Anor v Mackay is an appeal against a refusal to annul or rescind bankruptcy orders. The appeal was based on the assertion that the petition debt was not for a liquidated sum as required under section 267(2) of the Insolvency Act 1986. The debtors were obliged, as evidenced by a promissory note, to repay a loan of £200,000 to Mr Mackay. However, Mr Mackay also alleged a repudiatory breach of the loan agreement due to the failure of the debtors to provide accounts.
The issue therefore arose whether repudiation would turn a liquidated debt under a loan into an unliquidated claim for damages. The Court held that the failure to provide accounts did not amount to a repudiatory breach because accounts were pointless in the circumstances and at the very least a formal demand would have been required. Either way, the Court noted that "a debt, including one payable at a future date, remains a debt, following repudiation." The petition debt was thus for a liquidated sum and the appeal dismissed.
See Court decision here.