Delaney v Chen & Anor

Delaney v Chen & Anor

The transaction was not at an undervalue because, on the unchallenged evidence, the combined value of the sale price and the lease exceeded the market value of the property, and the lease had a quantifiable value. Thus, section 423(1)(c) was not satisfied.

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
Transactions at Undervalue, Section 423 Insolvency Act 1986, Leaseback Arrangements, Valuation of Property Interests
Insolvency Law Property Law Transactions at Undervalue Section 423 Insolvency Act 1986 Leaseback Arrangements Valuation of Property Interests

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 7 Party arguments 2 Amounts and remedies 5
Sign in to unlock

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 the interests of 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 lease exceeded the market value of the property, and the lease had a quantifiable value. Thus, section 423(1)(c) was not satisfied.

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed