Khilji v Mehers & Anor [2025] EWHC 548 (Ch) (11 March 2025)

Khilji v Mehers & Anor [2025] EWHC 548 (Ch) (11 March 2025)

The appellant did not inform the trustee or official receiver of her beneficial interest in the property within three months of bankruptcy, nor did the trustee become aware of such interest before 11 January 2019; actual knowledge, not constructive knowledge, is required under s283A(5) Insolvency Act 1986. The trustee's possession claim was made within the relevant three-year period and stopped the clock, preventing revesting of the property interest.

Citation
[2025] EWHC 548 (Ch)
Parties
Appellant: Scherzade Khilji; First Respondent (trustee in Bankruptcy): Amy Mehers; Second Respondent (administrator of Deceased's Estate): David George Hartwell
Jurisdiction
England and Wales
Judgment Date
11 March 2025
Procedural Posture
Chancery Appeal / Appeal From Order of Deputy ICC Judge Curl KC Dated 2 March 2023
Outcome
Appeal dismissed
Legal Topics
Bankruptcy Trustee's Powers, Revesting of Property, Common Intention Constructive Trust, Interpretation of S283 a Insolvency Act 1986
Insolvency Trusts and Estates Property Law Bankruptcy Trustee's Powers Revesting of Property Common Intention Constructive Trust Interpretation of S283 a Insolvency Act 1986

Case Brief

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Parties

Scherzade Khilji

Appellant

Amy Mehers

First Respondent (trustee in Bankruptcy)

David George Hartwell

Second Respondent (administrator of Deceased's Estate)

Procedural Posture

Chancery Appeal / Appeal From Order of Deputy ICC Judge Curl KC Dated 2 March 2023

Legal Issues

  1. 1 Whether the three-year period under s283A Insolvency Act 1986 was exceeded
  2. 2 Proper construction of 'informed' and 'become aware' under s283A(5)
  3. 3 Whether the appellant's beneficial interest in property revested

Ratio Decidendi

The appellant did not inform the trustee or official receiver of her beneficial interest in the property within three months of bankruptcy, nor did the trustee become aware of such interest before 11 January 2019; actual knowledge, not constructive knowledge, is required under s283A(5) Insolvency Act 1986. The trustee's possession claim was made within the relevant three-year period and stopped the clock, preventing revesting of the property interest.

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed on all grounds
  • Parties to agree consequential matters and costs; if not, further hearing to be held within 28 days