On 7 May 2025, the UK Supreme Court handed down its judgment in Bilta (UK) Ltd (in liquidation) and others v Tradition Financial Services Ltd [2025] UKSC 18. The judgment primarily concerned the scope of s.213 Insolvency Act 1986 (“s.213“), the provision under which any persons who were knowingly parties to the carrying on of a company for a fraudulent purpose may be declared liable to make contributions to the company’s assets.
The Supreme Court confirmed that the scope of s.213 extends beyond those involved in the management or control of the fraudulent company, to include third parties who participated in, facilitated, or assisted fraudulent transactions by the company if they knew that the company’s business was being carried on for…
