Pasram v Segal

Pasram v Segal

The transfer of Mr Pasram's beneficial interest in the property to Mrs Pasram for £1,000 was a transaction at an undervalue under section 339 of the Insolvency Act 1986, as the consideration was significantly less than the value of the interest transferred and the purported release of matrimonial claims did not constitute valid consideration. The beneficial interest vested in the trustee, and the trustee is entitled to one half of the beneficial interest for the benefit of creditors. The claim was not barred by limitation or unreasonable delay.

Parties
Applicant: Richard Andrew Segal; First Respondent: Nowrag Pasram; Second Respondent: Hemwanti Pasram
Jurisdiction
England and Wales
Judgment Date
07 June 2007
Procedural Posture
Bankruptcy / Judgment
Outcome
Application granted
Legal Topics
Transaction at Undervalue, Beneficial Ownership, Bankruptcy Trustee Powers, Limitation Period, Costs in Bankruptcy, Delegation by Trustee
Insolvency Property Law Family Law Transaction at Undervalue Beneficial Ownership Bankruptcy Trustee Powers Limitation Period Costs in Bankruptcy +1 more

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Parties

Richard Andrew Segal

Applicant

Nowrag Pasram

First Respondent

Hemwanti Pasram

Second Respondent

Procedural Posture

Bankruptcy / Judgment

Legal Issues

  1. 1 Whether the transfer of the property was a transaction at an undervalue under section 339 of the Insolvency Act 1986
  2. 2 Whether the beneficial interest in the property vested in the trustee in bankruptcy
  3. 3 Whether the claim was barred by limitation or unreasonable delay

Ratio Decidendi

The transfer of Mr Pasram's beneficial interest in the property to Mrs Pasram for £1,000 was a transaction at an undervalue under section 339 of the Insolvency Act 1986, as the consideration was significantly less than the value of the interest transferred and the purported release of matrimonial claims did not constitute valid consideration. The beneficial interest vested in the trustee, and the trustee is entitled to one half of the beneficial interest for the benefit of creditors. The claim was not barred by limitation or unreasonable delay.

Court Disposition

Application granted

Orders

  • Declaration that Mr and Mrs Pasram held the property in equal beneficial shares prior to the transfer
  • Declaration that the transfer was a transaction at an undervalue under section 339 of the Insolvency Act 1986