EFG Private Bank Ltd v Babaee (Re Insolvency Act 1986) [2024] EWHC 444 (Ch) (01 March 2024)

EFG Private Bank Ltd v Babaee (Re Insolvency Act 1986) [2024] EWHC 444 (Ch) (01 March 2024)

The debtor is hopelessly insolvent, with an unsecured debt of at least £300,000. The IVA proposal is neither serious nor viable, being based on speculative income projections and under-particularised legal claims, and fails to provide a legitimate basis for creditor returns. No satisfactory explanation was given for the late filing of the IVA proposal or interim order application. The court declined to grant a stay or interim order and ordered immediate bankruptcy.

Citation
[2024] EWHC 444 (Ch)
Parties
Petitioner: EFG Private Bank Limited; Debtor: Kambiz Babaee
Jurisdiction
England and Wales
Judgment Date
01 March 2024
Procedural Posture
Bankruptcy Petition / Final Hearing and Judgment
Outcome
Debtor adjudged bankrupt
Legal Topics
Statutory Demand, IVA Proposal, Interim Order, Valuation of Security, Cross Claim, Stay of Proceedings
Insolvency Bankruptcy Company Law Statutory Demand IVA Proposal Interim Order Valuation of Security Cross Claim +1 more

Case Brief

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Parties

EFG Private Bank Limited

Petitioner

Kambiz Babaee

Debtor

Procedural Posture

Bankruptcy Petition / Final Hearing and Judgment

Legal Issues

  1. 1 Whether the debtor is insolvent and liable to be adjudged bankrupt
  2. 2 Whether the IVA proposal is serious and viable
  3. 3 Whether a stay or interim order should be granted pending consideration of the IVA proposal

Ratio Decidendi

The debtor is hopelessly insolvent, with an unsecured debt of at least £300,000. The IVA proposal is neither serious nor viable, being based on speculative income projections and under-particularised legal claims, and fails to provide a legitimate basis for creditor returns. No satisfactory explanation was given for the late filing of the IVA proposal or interim order application. The court declined to grant a stay or interim order and ordered immediate bankruptcy.

Court Disposition

Debtor adjudged bankrupt

Orders

  • Bankruptcy order made against Kambiz Babaee at 15.06 on 9 February 2024