Alice in Litigationland: A Legal Reimagining

Who can be liable for fraudulent trading? The Supreme Court has spoken.

The Supreme Court has spoken. In a standout article in the IPA’s June 2025 newsletter, Neil Stewart, Associate Director at Manolete Partners, breaks down the Supreme Court’s decision in Bilta (UK) Ltd & Others v Tradition Financial Services Ltd [2025] UKSC 18 - a case that clarifies and expands the reach of section 213 of the Insolvency Act 1986.

Neil explores key questions:

• Can someone outside company management be liable for fraudulent trading? (Yes!)
• What happens to limitation when the claimant company was dissolved and later restored?
• How do legal fictions like imaginary “model” directors shape a court’s view on what could have been discovered?

The judgment blends legal rigour with real-world consequences - especially for those pursuing insolvency claims long after the fraud has taken place. As Neil highlights, Bilta is a reminder that when limitation and legal fictions collide, choosing the right legal team backed by the right litigation finance that offers full costs protection - is absolutely critical.

Read Neil’s full article here.

The legal position outlined in this article is correct as of the date of the original publication in IPA’s Newsletter in June 2025. Readers should verify whether any subsequent legal developments have affected the position stated here.