Vol 22 (2025) - Issue 4

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The Immovables Rule: Exceptions and Implications for Foreign Insolvency Office Holders – Guidance from Recent Cases

Synopsis
Two recent decisions of the Supreme Court in Kireeva v Bedzhamov1 ('Kireeva') and the High Court in Almeqham v Al-Sanea & Ors2 ('Almeqham') provide guidance for foreign insolvency office holders dealing with property in England and Wales. First, Kireeva confirmed the primacy of the immovables rule, which restricts the ability of foreign insolvency office holders to deal with land and immovable property in England and Wales unless one of two statutory exceptions apply.
Foreign office holders seeking to deal with immovable property in England and Wales must rely on either the Cross-Border Insolvency Regulations 2006 (the 'CBIR') or section 426 of the Insolvency Act 1986 ('IA 1986').
A foreign office holder can likely also seek to bring an application under the transaction avoidance provisions of the IA 1986, including section 423, to circumvent the immovables rule. The decision in Almeqham begins to explore the scope of these exceptions and provides practical guidance as to how they may be utilised.