El Husseiny: Court Ruling Bolsters Creditor Protections
Deal News | Feb 21, 2025 | Freeths
The UK Supreme Court has delivered a significant ruling regarding the disposal of assets under section 423 of the Insolvency Act 1986. The judgement stemmed from the case of El Husseiny v Invest Bank, where Mr. El-Husseini disposed of a property in central London, owned by Marquee Holdings, by transferring it to his son for no consideration. The court ruled that such transactions are caught under insolvency law, even if the debtor does not personally own the asset at the time of the transaction, but where the debtor structures the disposal to avoid creditor claims. The decision strengthens creditor protections under UK insolvency law, clarifying that any transaction aimed at putting assets beyond the reach of creditors is subject to scrutiny, irrespective of direct ownership.
Sectors
- Insolvency Law
- Real Estate
- Banking
Geography
- United Kingdom – The legal ruling is based on the UK Supreme Court's interpretation of the Insolvency Act 1986, which is applicable within the UK.
Industry
- Insolvency Law – The decision impacts the way assets are treated under insolvency laws, providing clarification and strengthening creditor rights.
- Real Estate – The case involved a significant real estate asset transfer, highlighting the implications of asset disposal laws on property transactions.
- Banking – Invest Bank's involvement in seeking enforcement of its judgment against Mr. El-Husseini places this within the banking sector.
Financials
- 20 million – The judgment amount obtained by Invest Bank against Mr. El-Husseini.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| El Husseiny | Debtor | People | Mr. El-Husseini was the debtor who transferred the asset in question, impacting the creditor's ability to enforce a judgment. |
| Invest Bank | Creditor | Companies | The bank that obtained a judgment against Mr. El-Husseini and sought enforcement against the property made central to the case. |
| Supreme Court | Judicial Body | Government | The highest court in the UK legal system that delivered the judgment impacting insolvency law. |
| Marquee Holdings | Holding Company | Companies | The company owned by Mr. El-Husseini holding the asset that was transferred. |
| Freeths | Legal Advisor | Companies | Provided legal analysis or representation in the context of the discussed court case. |
| Ziad | Recipient of Asset | People | Mr. El-Husseini's son, who received the property for no consideration. |