Invest Bank P.S.C v Ahmad Mohammed El-Husseini & Ors

Invest Bank P.S.C v Ahmad Mohammed El-Husseini & Ors

The Bank failed to plead or prove that Commodore UAE was in financial difficulty at the relevant times or that Ahmad subjectively intended to put assets beyond the reach of the Bank or other creditors. The Bank's inferential case was inconsistent with contemporaneous documents, and adverse inferences were not justified. The Bank's claims under section 423 and related relief were dismissed against all Defendants, including Virtue Trustees, which acted in good faith and without notice of any improper purpose.

Parties
Claimant: Invest Bank P. S. C; First Defendant: Ahmad Mohammed El-Husseini; Second Defendant: Mohammed Ahmad El-Husseiny; Third Defendant: Alexander Ahmad El-Husseiny; Fourth Defendant: Ziad Ahmad El-Husseiny; Fifth Defendant: Ramzy Ahmad El-Husseiny; Sixth Defendant: Joan Eva Henry; Seventh Defendant: Virtue Trustees (Switzerland) A.G.; Eighth Defendant: Global Green Development Limited
Jurisdiction
England and Wales
Judgment Date
21 November 2024
Procedural Posture
Commercial Claim (section 423 Insolvency Act 1986) / Final Judgment After Trial
Outcome
Claim dismissed
Legal Topics
Transactions at Undervalue, Fraudulent Conveyance, Asset Protection, Personal Guarantees, Freezing Orders, Pleading Standards, Adverse Inferences, Disclosure Obligations
Insolvency Commercial Law Trusts and Equity Banking Law Transactions at Undervalue Fraudulent Conveyance Asset Protection Personal Guarantees +4 more

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Parties

Invest Bank P. S. C

Claimant

Ahmad Mohammed El-Husseini

First Defendant

Mohammed Ahmad El-Husseiny

Second Defendant

Alexander Ahmad El-Husseiny

Third Defendant

Ziad Ahmad El-Husseiny

Fourth Defendant

Ramzy Ahmad El-Husseiny

Fifth Defendant

Joan Eva Henry

Sixth Defendant

Virtue Trustees (Switzerland) A.G.

Seventh Defendant

Global Green Development Limited

Eighth Defendant

Procedural Posture

Commercial Claim (section 423 Insolvency Act 1986) / Final Judgment After Trial

Legal Issues

  1. 1 Whether Ahmad El-Husseini transferred assets at an undervalue for the purpose of putting them beyond the reach of creditors (section 423 Insolvency Act 1986)
  2. 2 Whether the Bank proved Ahmad's subjective purpose in the impugned transactions
  3. 3 Whether the Bank's pleadings permitted reliance on Commodore UAE's alleged financial difficulties

Ratio Decidendi

The Bank failed to plead or prove that Commodore UAE was in financial difficulty at the relevant times or that Ahmad subjectively intended to put assets beyond the reach of the Bank or other creditors. The Bank's inferential case was inconsistent with contemporaneous documents, and adverse inferences were not justified. The Bank's claims under section 423 and related relief were dismissed against all Defendants, including Virtue Trustees, which acted in good faith and without notice of any improper purpose.

Court Disposition

Claim dismissed

Orders

  • All claims against the Defendants are dismissed.
  • No relief is granted under section 423 Insolvency Act 1986.