Delaney v Chen & Anor [2010] EWHC 6 (Ch) (08 January 2010)
The victims failed to discharge the burden of proving that the transaction was at an undervalue, as the tenancy granted to the sellers had a premium value of £65,000, making the consideration received by the sellers equivalent to the unencumbered value; therefore, section 423 does not apply.
- Citation
- [2010] EWHC 6 (Ch)
- Parties
- Appellant: Mr. Paul Delaney; Respondent: Mrs. Can Chen; Respondent: Mr. An Xiang Du
- Jurisdiction
- England and Wales
- Judgment Date
- 08 January 2010
- Procedural Posture
- Appeal / Judgment on Appeal From District Judge Ingram's Order Dated 9 July 2009
- Outcome
- Appeal allowed
- Legal Topics
- Transaction at Undervalue, Sale and Lease Back, Section 423 Insolvency Act 1986, Creditor Protection
Case Brief
Summary, issues, holding and outcome
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Parties
Mr. Paul Delaney
Appellant
Mrs. Can Chen
Respondent
Mr. An Xiang Du
Respondent
Procedural Posture
Appeal / Judgment on Appeal From District Judge Ingram's Order Dated 9 July 2009
Legal Issues
- 1 Whether the sale and lease back transaction was at an undervalue under section 423 of the Insolvency Act 1986
- 2 Whether the sellers' purpose was to put assets beyond the reach of creditors or prejudice their interests
Ratio Decidendi
The victims failed to discharge the burden of proving that the transaction was at an undervalue, as the tenancy granted to the sellers had a premium value of £65,000, making the consideration received by the sellers equivalent to the unencumbered value; therefore, section 423 does not apply.
Court Disposition
Appeal allowed
Orders
- District Judge's order set aside
- Section 423 does not apply; no retransfer or charge ordered
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