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On 15 April 2024, Sir Nigel Teare (sitting as a High Court Judge) handed down judgment in Crescent Gas Corporation Ltd v National Iranian Oil Company & anor. [2024] EWHC 835 (Comm), concerning a claim based on a transaction defrauding a creditor under s.423 of the Insolvency Act 1986.

The judgment considers whether or not a property transferred by a judgment debtor to a related entity, at a time when the judgment debtor was facing enforcement proceedings, was the subject of a trust or equivalent instrument under foreign law, such that the transfer of the property was not a transaction at an undervalue within the meaning of s.423. The Court also considered the principles applicable to deciding whether a defendant has acted with the ‘avoidance purpose’ under s.423(3) when entering into a transaction, and the approach to drawing inferences with respect to purpose.

Luka Krsljanin acted for the successful Claimant.

The judgment may be found here.

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