Fraud, Asset Tracing and Enforcement Update | August 2025
Published on 7th August 2025
Developments in cross-border disputes law and practice in England and Wales
Welcome to our latest update and summary of recent developments for professionals, businesses and individuals looking to navigate fraud, international enforcement and asset recovery issues.
This edition includes updates on the cross-border enforcement of judgments, fraudulent trading, account of profits, the English court's ability to grant freezing orders on third parties out of the jurisdiction, and a rare order for cross-examination on an interim application.
As ever, if you would like to discuss any of the issues raised in this update, please get in touch with our specialist team.
2019 Hague Convention enters into force in the UK
The Hague Convention on the Recognition and Enforcement of Foreign Judgments in Civil or Commercial Matters came into force in the UK on 1 July. The convention provides for a simplified framework for the recognition and enforcement of civil judgments between contracting states (including EU member states) where certain criteria are met. This supplements the 2005 Hague Convention (on Choice of Court Agreements) which facilitates the enforcement of judgments given by courts named in an exclusive jurisdiction agreement.
The English Law 'account of profits' remedy clarified
The UK Supreme Court, in the recent case of Rukhadze v Recovery Partners GP Limited decided that the equitable duty on fiduciaries (such as trustees and directors) to "account" to their principals for any profits made in connection with their capacity as a fiduciary is to be applied strictly. This means that if unauthorised profits are made that are sufficiently connected to the fiduciary relationship, the principal is entitled to recovery of those profits regardless of whether the principal could have made the profits if the fiduciary did not or the fiduciary could have made the profit without a breach of duty.
English High Court grants rare order for cross-examination on an interim application
Witnesses giving evidence in interim applications do not generally expect to be cross-examined since the court is not usually making final determinations of fact.
However, in a rare exercise of its powers, the High Court has recently granted permission in Mold Investments Ltd v Holloway and others [2025] for a defendant to cross-examine the witnesses who gave evidence in support of an ex-parte application for a freezing order. This was an exceptional case involving allegations of fraud and the fabrication of documents.
English High Court considers if it can grant a freezing order over a third party outside its jurisdiction to support enforcement
In Commercial Bank of Dubai PC and others v Al Sari and others, the High Court considered the circumstances in which the court will grant a freezing order relating to the enforcement of a judgment against a third party.
The court was satisfied that the third party had assets which could potentially be enforced against – but the real issue was around the fact that the third party was outside the jurisdiction.
UK Supreme Court clarifies liability for fraudulent trading under the Insolvency Act not restricted to company insiders
The recent UK Supreme Court judgment in Bilta (UK) Ltd (in liquidation) and others v Tradition Financial Services Ltd [2025] upheld the Court of Appeal's broad interpretation of section 213 of the Insolvency Act 1986, deciding that its scope is not limited to directors or those otherwise implicated in the management of the fraudulent business. Third parties knowingly dealing with the fraudulent business are also at risk.
The decision also addressed the issue of how the "reasonable diligence" test in section 32 of the Limitation Act applies, where a claimant company has been struck off and the question arises as to when the company should have discovered the fraud and the limitation period should start to run.
