A Review of Insolvency Appeals from this Winter period: a cold start but some good news for judgment creditors

28th February 2025

Rebecca Farrell, specialist commercial and insolvency barrister at 3PB Barristers (3 Paper Buildings), has written an article exploring three recent Insolvency Appeals and their potential impact.

In her article, Rebecca addresses the Supreme Court decision in El Husseiny v Invest Bank PSC [2025] UKSC 4 which was handed down last week. This Appeal concerned the interpretation of Section 423 of the Insolvency Act 1986 (“the Insolvency Act”). In its analysis the Supreme Court supported a “straightforward” reading of the Section 423 and confirmed Section 423 was not confined to dealing simply with an asset owned by the debtor. Rather, Section 423 could apply to a type of transaction where the debtor entered into an arrangement under which a company owned by him transferred a valuable asset for nil consideration or at an undervalue. Rebecca notes that this decision is likely:

(a) to be welcomed by insolvency practitioners who seek to rely on Section 423 and the other transaction avoidance provisions in the Insolvency Act and;

(b) to be of wider application and significance given that the provision can be deployed in other types of proceedings, not just insolvency proceedings.

Rebecca contrasts this decision with recent Court of Appeal authority which she considers has perhaps provided less warmth to judgment creditors seeking remedies against debtors in the insolvency context this winter. The two cases she discusses are: Manolete Partners Plc v White [2024] EWCA Civ 1418 and Servis-Terminal LLC v Drelle [2025] EWCA Civ 62.

To read Rebecca's article, please click here.

To contact or instruct Rebecca, please email Practice Director David Fielder, or telephone 020 7583 8055.