Re Ahmed (A Debtor)

Bankruptcy – Disposal of property. The Chancery Division granted the applicant trustees in the bankruptcy of the first respondent relief under s 284 of the Insolvency Act 1986 after he had transferred his minority shares in a company to the second respondent following the presentation of a bankruptcy petition. The respondents had argued that the monetary relief sought by the trustees was unprecedented where the asset, namely the shares, had been returned and that the trustees had failed to plead or prove actual loss. The court held that the trustees had not been not required to plead actual loss and that the second to the fifth respondents had not acted in god faith and were jointly liable for the loss caused, namely the devaluation of the shares. The court held that the trustees were entitled to relief in the form of a fair value of the shares as at the date of the transfers.

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