Section 423 Insolvency Act 1986 - Recent Case Law & Transactions Defrauding Creditors

Introduction

Assets being moved beyond the reach of creditors? Section 423 of the Insolvency Act 1986 provides a powerful statutory remedy to unwind transactions deliberately structured to defeat creditor claims.

This new virtual classroom seminar delivers a practical, case-led examination of ‘Transactions Defrauding Creditors’ under section 423, focusing on how courts are currently applying and developing the law. Recent significant authorities will be explored, including:

• Credit Suisse Virtuoso SICAV-SIF v Softbank Group Corp and TAQA Brantani Limited v Fujaira Oil and Gas UK LLC (scope of ‘transaction’ under section 423)
• El-Husseiny v Invest Bank plc (Supreme Court guidance on undervalue and beneficial ownership)
• Khan v Goldfarb (proprietary interim relief via injunction)
• Integral Petroleum SA v Petrogat FZE (personal claims against directors of beneficiaries)
• THG Plc v Zedra Trust Co (Jersey) Ltd (limitation issues in section 423 claims)

Attendees will gain a clear, litigation-focused understanding of how section 423 is being deployed in complex asset recovery scenarios, including practical insights into pleadings, evidential strategy, interim relief and emerging risks in cross-border insolvency disputes.

The session is designed for insolvency litigators, commercial litigators, insolvency practitioners, and litigation funders seeking up-to-date, actionable knowledge on one of the most strategically important tools in creditor protection.

What You Will Learn

This live and interactive course will cover the following:

• The key legal and practical distinctions between claims under section 238 and section 423 of the Insolvency Act 1986
• Strategic considerations - when to plead section 423 in addition to, or instead of, section 238
• Identifying and defining the ‘transaction’ for the purposes of section 423
• Common transaction types: dividends, connected-party sales and debt forgiveness arrangements
• Establishing ‘undervalue’ - legal thresholds and evidential considerations
• Procedural steps and case management considerations in section 423 claims
• Limitation periods and time-bar issues
• Availability and tactical use of interim injunctions
• When summary judgment is likely to be granted
• Effective use of documentary evidence in asset recovery litigation
• Drafting and deploying witness evidence of fact
• Maximising the impact of expert evidence

Recording of live sessions: Soon after the Learn Live session has taken place you will be able to go back and access the recording - should you wish to revisit the material discussed.