Bilta (UK) Ltd v Nazir (No 2) [2015] UKSC 23

Court: Supreme Court

Facts: Bilta, involved in VAT fraud, was wound up. Liquidators pursued claims against directors and a Swiss company. Defendants argued that the ex turpi causa principle and lack of extra-territorial effect of section 213 should prevent the claim.

Issue: Can a company pursue claims against its directors for fraudulent activities even if the company was complicit in the fraud, and does section 213 of the Insolvency Act 1986 have extra-territorial effect?

Held: Appeal dismissed. The Supreme Court ruled that the ex turpi causa principle did not apply and section 213 had extra-territorial effect, allowing the claim to proceed.

Key Judicial Statement: The court affirmed, "A company can pursue claims against its directors despite its own complicity in the fraudulent conduct."

💡 Leveluplaw: A company can pursue claims against its directors for fraudulent trading even if the company was complicit in the fraud, and section 213 has extra-territorial reach