Judgment Hand Down: Conway & Ors v Air Arabia

The Court held that lodging a proof of debt amounted to a submission to the jurisdiction for the purpose of a section 147 claim, as a declaration that a person should contribute to the liquidation estate is an order within the winding up proceedings and there is no material distinction in this regard between claims under section 147 and claims under section 145 (preferences) and section 146 (dispositions at an undervalue). The question of leave to serve out of the jurisdiction was therefore otiose.

The Court also confirmed that section 147 of the Companies Act has extra-territorial effect.

This is an important and extremely helpful decision for insolvency office-holders looking to bring fraudulent trading claims against creditors based outside of the jurisdiction.

Tom Smith KC and Annabelle Wang acted for the successful Plaintiffs, instructed by Carey Olsen.

The full judgment can be read here.