The UK Supreme Court clarifies the scope of s.213 of the Insolvency Act 1986: Bilta (UK) Ltd v Tradition Financial Services Ltd

In a landmark decision on 7 May 2025, the UK Supreme Court clarified the scope of fraudulent trading under section 213 of the Insolvency Act 1986 (“s. 213 IA 1986”) in Bilta (UK) Ltd v Tradition Financial Services Ltd [2025] UKSC 18. The judgment confirms that third parties/outsiders who participate in, facilitate or assist fraudulent transactions by a company when they know that the company’s business is being carried on for a fraudulent purpose are liable for contributions under s.213 IA 1986.

The Court also considered the application of limitation periods, where a company has been dissolved and then restored.