S423 Insolvency Act: transactions defrauding creditors – Mace and Brueton examine why you need to know about this section

Andrew Mace and Andrew Brueton give an introduction to the provisions of s423 Insolvency Act (IA) 1986 and then take a look at the key cases on the section in recent year, in particular the Supreme Court ruling in El-Husseiny.  It is important for practitioners generally to know about this section, not just those handling primarily insolvency matters.

1:35  NB fraud and insolvency are not essential to implementation of the s423 IA.  The section is deployed widely not just commercially but also eg in matrimonial cases.
2:05  The aims of section 423 IA and wide definition of “transaction”.
2:57   Section 424 IA – who can apply.
3:40  Section 425 IA – remedies.
4:25  Section 423 – a look in detail at the section and how the courts have interpreted it including El-Husseiny and Purkiss v Kennedy.
19:55  Allen v Hurst – section 423 claim against a bankrupt re sale of property.  Difficulties of evidencing the intent necessary for a s423 claim to work.
27:20  Sayers v Dixon – assets vested in a spouse.
30:50  Credit Suisse Virtuoso – what relief should be given.

Case citations

Cases

Invest Bank PSC v El-Husseini [2022] EWCA 894 (Comm)
El-Husseiny v Invest Bank PSC [2025] UKSC 4
Purkiss v Kennedy [2025] EWCA Civ 268 and [2024] EWHC 1081 (Ch)
Rangers Football Club 2012 Plc (In Liquidation) (formerly Rangers Football Club Plc) v Advocate General for Scotland [2017] UKSC 45
Inland Revenue Commissioners v Duke of Westminster [1936] AC 1
Allen v Hurst & Ors [2022] EWHC 2649 (Ch)
Sayers v Dixon [2025] EWHC 1886 (Ch)
Credit Suisse Virtuoso SICAV-SIF & Anor v  SoftBank & Ors [2025] EWHC 2631 (Ch)

Legislation

ss423, 424, 425 Insolvency Act 1986