Kamran Malik & Ors v Farida Messalti

Kamran Malik & Ors v Farida Messalti

Section 423(3) of the Insolvency Act 1986 does not require the transferor to have knowledge of specific creditors or classes of creditors at the time of the transaction. The statutory focus is on the transferor's purpose in entering into the transaction, not their knowledge. The appeal is dismissed because the appellant's construction of Section 423(3) is incorrect.

Parties
Appellant: Kamran Malik; Prospective Appellant: Urwah Malik; Prospective Appellant: Sanaa Malik; Prospective Appellant: Arfeen Malik; Prospective Appellant: Imaan Malik; Respondent: Farida Messalti
Jurisdiction
England and Wales
Judgment Date
25 October 2024
Procedural Posture
Civil Appeal / Appeal From Final Charging Order
Outcome
Appeal dismissed
Legal Topics
Transactions at an Undervalue, Section 423 Insolvency Act 1986, Purpose of Transferor, Statutory Construction, Charging Orders
Insolvency Law Trusts and Equity Transactions at an Undervalue Section 423 Insolvency Act 1986 Purpose of Transferor Statutory Construction Charging Orders

Case Brief

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Parties

Kamran Malik

Appellant

Urwah Malik

Prospective Appellant

Sanaa Malik

Prospective Appellant

Arfeen Malik

Prospective Appellant

Imaan Malik

Prospective Appellant

Farida Messalti

Respondent

Procedural Posture

Civil Appeal / Appeal From Final Charging Order

Legal Issues

  1. 1 Whether Section 423(3) of the Insolvency Act 1986 requires the transferor to have knowledge of specific creditors or classes of creditors at the time of the transaction
  2. 2 Proper construction of 'a person who is making, or may at some time make, a claim' under Section 423(3)
  3. 3 Whether the Judge erred in applying Section 423 to the facts

Ratio Decidendi

Section 423(3) of the Insolvency Act 1986 does not require the transferor to have knowledge of specific creditors or classes of creditors at the time of the transaction. The statutory focus is on the transferor's purpose in entering into the transaction, not their knowledge. The appeal is dismissed because the appellant's construction of Section 423(3) is incorrect.

Court Disposition

Appeal dismissed

Orders

  • The appeal is dismissed.
  • The final charging order in favour of the respondent stands.