Delaney v Chen & Anor [2010] EWCA Civ 1455 (16 November 2010)

Delaney v Chen & Anor [2010] EWCA Civ 1455 (16 November 2010)

The transaction was not at an undervalue because, on the unchallenged evidence, the combined value of the sale price and the leaseback exceeded the market value of the property. The leaseback had value, and there was no evidence to the contrary. Therefore, section 423(1)(c) was not satisfied.

Citation
[2010] EWCA Civ 1455
Parties
Respondent: Delaney; Appellant: Chen; Appellant: Du
Jurisdiction
England and Wales
Judgment Date
16 November 2010
Procedural Posture
Civil Appeal / Court of Appeal Judgment
Outcome
Appeal dismissed
Legal Topics
Transaction at Undervalue, Section 423 Insolvency Act 1986, Leaseback Arrangements, Valuation of Property Interests
Insolvency Law Property Law Transaction at Undervalue Section 423 Insolvency Act 1986 Leaseback Arrangements Valuation of Property Interests

Case Brief

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Parties

Delaney

Respondent

Chen

Appellant

Du

Appellant

Procedural Posture

Civil Appeal / Court of Appeal Judgment

Legal Issues

  1. 1 Whether the transaction was at an undervalue under section 423(1)(c) of the Insolvency Act 1986
  2. 2 Whether the purpose of the transaction was to prejudice creditors under section 423(3)

Ratio Decidendi

The transaction was not at an undervalue because, on the unchallenged evidence, the combined value of the sale price and the leaseback exceeded the market value of the property. The leaseback had value, and there was no evidence to the contrary. Therefore, section 423(1)(c) was not satisfied.

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed