Messalti v Malik

Subject Matter

INSOLVENCY — Transaction at undervalue — Transfers of property defrauding creditor — Appellant transferring beneficial interest in property to children — Appellant later subject to adverse costs order and charging order made over property — Disposition of beneficial interest set aside as transaction at undervalue made for prohibited purpose — Whether court to be satisfied that transferor had knowledge of specific creditor at time of transfer — Whether court entitled to set aside disposition — Insolvency Act 1986 (c 45), s 423(3)

[2024] EWHC 2713 (Ch); [2025] Ch 123; [2025] 2 WLR 953; [2025] 2 BCLC 169; [2024] WLR(D) 480, Ch D

INSOLVENCY — Transaction at undervalue — Purpose of transaction — Creditor applying to set aside transaction entered into by debtor — Whether requirement that debtor having knowledge of actual or potential creditors at time of transaction — Insolvency Act 1986 (c 45), s 423(3)

[2024] EWHC 2713 (Ch); [2025] Ch 123; [2025] 2 WLR 953; [2025] 2 BCLC 169; [2024] WLR(D) 480, Ch D

INSOLVENCY — Transaction at undervalue — Purpose of transaction — Creditor applying to set aside transaction entered into by debtor — Whether necessary that debtor having knowledge of actual or potential creditors at time of transaction — Insolvency Act 1986 (c 45), s 423(3)

[2024] EWHC 2713 (Ch); [2025] Ch 123; [2025] 2 WLR 953; [2025] 2 BCLC 169; [2024] WLR(D) 480, Ch D

Appellate History