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Insolvency – Transaction at undervalue. The Chancery Division ruled on an application by the first respondent's trustee in bankruptcy, challenging transactions that the first respondent had entered into in 2010-11 in relation to a property he owned, the first respondent having subsequently been adjudged bankrupt, including a trust deed and consent order disposing of ancillary relief proceedings brought by the first respondent's wife. It held that one of the charges was a sham and so a nullity, but that a second charge had not been proved to be either a sham or a preference within the meaning of s 340 of the Insolvency Act 1986, and the challenge to the trust deed and consent order also failed.
Insolvency – Transaction at undervalue. The Chancery Division ruled on an application by the first respondent's trustee in bankruptcy, challenging transactions that the first respondent had entered into in 2010-11 in relation to a property he owned, the first respondent having subsequently been adjudged bankrupt, including a trust deed and consent order disposing of ancillary relief proceedings brought by the first respondent's wife. It held that one of the charges was a sham and so a nullity, but that a second charge had not been proved to be either a sham or a preference within the meaning of s 340 of the Insolvency Act 1986, and the challenge to the trust deed and consent order also failed.
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