Strike Out Applications: The Perils of Putting the Cart Before the Horse

Last month, the Cayman Islands Court of Appeal (the CICA) handed down a comprehensive judgment analysing important questions relating to the availability and purpose of just and equitable winding-up petitions as a statutory remedy in Cayman. In doing so, the CICA overruled a judgment of the Grand Court, which had struck out a contributory's petition brought by Tianrui (International) Holding Company Limited (the Petitioner) against China Shanshui Cement Group Limited (the Company). In its judgment, the CICA warned against reaching premature conclusions on a strike out application.