Keith Algie & Anor (as Trustees in Bankruptcy of Christopher Michael Hutcheson) v Greta Diane Hutcheson

Keith Algie & Anor (as Trustees in Bankruptcy of Christopher Michael Hutcheson) v Greta Diane Hutcheson

The transfer of the net proceeds of Wycombe Place to Mrs Hutcheson constituted a transaction defrauding creditors under s.423 and a transaction at an undervalue under s.339, as Mr Hutcheson was insolvent and intended to put assets beyond the reach of creditors. Mrs Hutcheson had a beneficial interest in Romsey and Wycombe Place, so the Trustees' claims in respect of those properties and the Mount Street Properties failed, except for Wycombe Place.

Parties
Applicant: Keith Algie; Applicant: Andrew James Nalliah; Bankrupt: Christopher Michael Hutcheson; Respondent: Greta Diane Hutcheson
Jurisdiction
England and Wales
Judgment Date
24 July 2025
Procedural Posture
Bankruptcy Application / Judgment After Trial
Outcome
Trustees' claim succeeds in respect of Wycombe Place net proceeds; all other claims dismissed.
Legal Topics
Transaction at Undervalue, Transactions Defrauding Creditors, Constructive Trust, Beneficial Interest, Bankruptcy, Section 339 Insolvency Act 1986, Section 423 Insolvency Act 1986
Insolvency Property Law Trusts Transaction at Undervalue Transactions Defrauding Creditors Constructive Trust Beneficial Interest Bankruptcy +2 more

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Parties

Keith Algie

Applicant

Andrew James Nalliah

Applicant

Christopher Michael Hutcheson

Bankrupt

Greta Diane Hutcheson

Respondent

Procedural Posture

Bankruptcy Application / Judgment After Trial

Legal Issues

  1. 1 Whether Mrs Hutcheson received sale proceeds in excess of her legal entitlement from four properties
  2. 2 Whether the transfers constituted transactions at an undervalue under s.339 Insolvency Act 1986
  3. 3 Whether the transfers constituted transactions defrauding creditors under s.423 Insolvency Act 1986

Ratio Decidendi

The transfer of the net proceeds of Wycombe Place to Mrs Hutcheson constituted a transaction defrauding creditors under s.423 and a transaction at an undervalue under s.339, as Mr Hutcheson was insolvent and intended to put assets beyond the reach of creditors. Mrs Hutcheson had a beneficial interest in Romsey and Wycombe Place, so the Trustees' claims in respect of those properties and the Mount Street Properties failed, except for Wycombe Place.

Court Disposition

Trustees' claim succeeds in respect of Wycombe Place net proceeds; all other claims dismissed.

Orders

  • Mrs Hutcheson to pay the Trustees £328,541, being half the net proceeds of Wycombe Place.
  • Debates as to interest and costs to be determined at a consequentials hearing.