Gordian Holdings Ltd v Sofroniou & Anor [2021] EWHC 235 (Comm) (12 February 2021)

Gordian Holdings Ltd v Sofroniou & Anor [2021] EWHC 235 (Comm) (12 February 2021)

A claimant who was prejudiced by a transaction at undervalue at the time it occurred remains a 'victim' under s. 423 Insolvency Act 1986, notwithstanding subsequent return of the asset, and is entitled to pursue relief; the claim is not bound to fail and should not be struck out or summarily dismissed.

Citation
[2021] EWHC 235 (Comm)
Parties
Claimant: Gordian Holdings Limited; First Defendant: Yiannakis Sofroniou; Second Defendant: Cheryl Louise Reid
Jurisdiction
England and Wales
Judgment Date
12 February 2021
Procedural Posture
Commercial Court Application / Application to Strike Out or for Summary Judgment
Outcome
Application dismissed
Legal Topics
Transactions at Undervalue, Fraudulent Conveyance, Standing of Victim Under Insolvency Act, Summary Judgment, Strike Out Applications
Insolvency Commercial Law Transactions at Undervalue Fraudulent Conveyance Standing of Victim Under Insolvency Act Summary Judgment Strike Out Applications

Case Brief

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Parties

Gordian Holdings Limited

Claimant

Yiannakis Sofroniou

First Defendant

Cheryl Louise Reid

Second Defendant

Procedural Posture

Commercial Court Application / Application to Strike Out or for Summary Judgment

Legal Issues

  1. 1 Whether the claimant remains a 'victim' under s. 423 Insolvency Act 1986 after the impugned asset is returned
  2. 2 Whether any relief is available under s. 423 where the asset has been returned prior to proceedings
  3. 3 Whether the claim is an abuse of process or bound to fail

Ratio Decidendi

A claimant who was prejudiced by a transaction at undervalue at the time it occurred remains a 'victim' under s. 423 Insolvency Act 1986, notwithstanding subsequent return of the asset, and is entitled to pursue relief; the claim is not bound to fail and should not be struck out or summarily dismissed.

Court Disposition

Application dismissed

Orders

  • Defendants' application to strike out or for summary judgment is dismissed