El-Husseiny and another v Invest Bank PSC – what
does the case tell us about the remit of 'transactions entered
into at an undervalue'
The recent case of El-Husseiny and another v Invest
Bank (19 February 2025) provides an insight into the
interpretation of Section 423 of the Insolvency Act 1986 ("IA
1986") where liquidators are investigating transactions
defrauding creditors. In particular, the case focuses on the remit
of 'transactions entered into at an undervalue'.
We have summarised the facts of the case and the outcome,
below.
What are the facts of the case?
Invest Bank PSC ("the Bank") claimed it was a creditor
of the Appellants father ("Ahmad"). The Bank obtained
judgment in Abu Dhabi against Ahmad for approximately £20
million. The Bank claimed that Ahmad transferred multiple assets to
the Appellants at an undervalue through a limited company that he
was the legal and beneficial owner of. As such, the Bank tried to
obtain relief under Section 423
