Invest Bank PSC v El-Husseini [2022]

Invest Bank PSC v El-Husseini [2022]

Invest Bank PSC v El-Husseini [2022] EWHC 894 (Comm) is a UK company and insolvency law case concerning fraudulent transactions and creditors' claims. This case addresses the question of whether the disposal of assets by a company, solely owned and controlled by an individual, constitutes a transaction within the scope of Section 423 of the Insolvency Act 1986 (IA 1986).

Invest Bank PSC (the Bank) pursues a claim against the first defendant, a Lebanese businessman, alleging a debt of over £19 million under personal guarantees. The Bank seeks to enforce judgments obtained in the UAE or rely on the personal guarantees. As part of its claim, the Bank contends that the first defendant, along with companies purportedly under his ownership and control, engaged in transactions with other defendants to shield assets from the Bank's reach. The Bank invokes Section 423, alleging fraudulent transactions defrauding creditors and seeks remedies, including the reversal of these transactions.

The High Court, under the jurisdiction of Andrew Baker J, clarified a fundamental legal principle known as the self-dealing fallacy. The court held that the mere disposal of assets by a company, acting through an individual who owns and controls it, does not inherently amount to a transaction entered into by that individual for the purposes of Section 423 of the IA 1986.

Andrew Baker J emphasised the legal distinction between an individual and a company, each possessing a separate legal personality. The judge rejected the notion that a transaction by a company can automatically be attributed to the individual in control. The self-dealing fallacy holds that when a debtor, acting through their company, takes steps that align with actions taken by the company itself, it does not constitute a transaction by the debtor.

However, the judgment clarified that a transaction could fall within the ambit of Section 423 if the individual debtor goes beyond the actions of the company, acting on their behalf rather than on behalf of the company. The determination of whether an individual's actions can be considered a transaction under Section 423 hinges on the specific facts of each case.

In summary, the disposal of assets by a company, solely owned and controlled by an individual, does not, without additional factors, constitute a transaction entered into by the controlling individual for the purposes of Section 423 of the IA 1986. The court's decision underscores the importance of examining the distinct legal personalities of individuals and companies in fraudulent transaction claims.
Back to blog
UOL Case Bank

UOL Case Bank

Upon joining, you become a valuable UOL student and gain instant access to over 2,100 case summaries. UOL Case Bank is constantly expanding. Speed up your revision with us now.

Subscribe Now

Where are our students from?

Yale University
Council of Europe
Baker Mckenzie 
University of Chicago
Columbia University
New York University
University of Michigan 
University College London (UCL)
London School of Economics (LSE)
King’s College London (KCL)
University of London
University of Manchester
University of Zurich
University of York
Brandeis University
University of Exeter
University of Sheffield
Boston University
University of Washington
University of Leeds
University of Law
Royal Holloway, University of London 
Birkbeck, University of London
SOAS, University of London
University of Kent
University of Hull
Queen’s University Belfast
Toronto Metropolitan University
Hong Kong University of Science and Technology
University of Buckingham

  • Criminal Practice

    Diagrams and Charts

    Our carefully designed diagrams and charts will guide you through complex legal issues.

  • Criminal Law

    Clear and Succinct Definitions

    Key concepts are concisely defined to help you understand legal topics quickly.

  • Property Law

    Statutory Provisions

    Statutory provisions are provided side by side with legal concepts to help you swiftly locate the relevant legislation.

  • Public Law

    Case Summaries

    We have summarised important cases for you so that you don't need to read long and boring cases.

  • Evidence

    Rules and Exceptions

    Rules and exceptions are clearly listed so that you know when a rule applies and when it doesn't.

  • Company Law


    Legal terms and key concepts are explained at the beginning of each chapter to help you learn efficiently.

  • Case Law

    Case law is provided side by side with legal concepts so that you know how legal principles and precedents were established.

  • Law Exam Guide

    Law Essay Guide

    You will learn essential law exam skills and essay writing techniques that are not taught in class.

  • Law Exam Guide

    Problem Question Guide

    We will show you how to answer problem questions step by step to achieve first-class results.

  • Conflict of Laws

    Structured Explanations

    Complex legal concepts are broken down into concise and digestible bullet point explanations.

  • Legal System and Method

    Legal Research

    You will learn legal research techniques with our study guide and become a proficient legal researcher.

  • Jurisprudence and Legal Theory


    All essential concepts, principles, and case law are included so that you can answer exam questions quickly.