Insolvency Act 1986, section 265

Creditor's petition: debtors against whom the court may make a bankruptcy order

Part IX Bankruptcy

(1)A bankruptcy petition may be presented to the court under section 264(1)(a) only if—

(a)the centre of the debtor's main interests is in England and Wales, or

[F668 (ab)the centre of the debtor's main interests is in a member State (other than Denmark) and the debtor has an establishment in England and Wales, orF668]

(b)F669... the test in subsection (2) is met.

(2)The test is that—

(a)the debtor is domiciled in England and Wales, or

(b)at any time in the period of three years ending with the day on which the petition is presented, the debtor—

(i)has been ordinarily resident, or has had a place of residence, in England and Wales, or

(ii)has carried on business in England and Wales.

(3)The reference in subsection (2) to the debtor carrying on business includes—

(a)the carrying on of business by a firm or partnership of which the debtor is a member, and

(b)the carrying on of business by an agent or manager for the debtor or for such a firm or partnership.

(4)In this section, references to the centre of the debtor's main interests have the same meaning as in Article 3 of the [F670 EU RegulationF670] .

[F671 (5) In this section “establishment” has the same meaning as in Article 2(10) of the EU Regulation. F671,F667]]

Definitions used in section 265 2

the debtor

(2) In Schedule 6 “the debtor” means the company or the individual concerned.

Defined in s.386(2) · see it in the full Act
articles

“articles”, in relation to a company (see section 18 of the Companies Act 2006 );

Defined in s.436(2) · see it in the full Act

Cases considering section 265 30

Mobile Telecommunications Company KSCP v HRH Prince Hussam Bin Saud Bin Abdulaziz Al Saud

[2025] EWCA Civ 681 · 30 May 2025Interprets

The court treated section 265 as posing a time-specific factual jurisdictional question and rejected a general continuing-status rule based on a prior residence (see paras [40]-[41]). Cited only. The court treated section 265(2) as an alternative jurisdictional route, but rejected a construction allowing jurisdiction merely because third-party premises might have been made available to the debtor (see paras [4]; [37]-[40]). The court applied the place-of-residence test and held that an unexercised expectation of guest permission in a property owned by another, without a request, visit or intention to reside, could not found bankruptcy jurisdiction (see paras [3]; [40]).

Mohammad Razi Khan v Arvinder Singh-Sall & Anor

[2023] EWCA Civ 1119 · 6 October 2023Interprets

The court treated section 265 as addressing the court’s authority over the debtor, distinguishing that question from compliance with the statutory conditions for a creditor’s petition. (see paras [45]-[49]) The court explained that section 265(3) made the domestic jurisdiction provisions subject to the COMI-based allocation in Article 3 of the Insolvency Regulation. (see paras [47]-[49])

Barlow Clowes International Ltd (In Liquidation) & Ors v Henwood

[2008] EWCA Civ 577 · 23 May 2008

Section 265 made English bankruptcy jurisdiction conditional on the debtor being domiciled in England and Wales when the petition was presented. Applying ordinary civil principles and the balance of probabilities, the court held that the condition was satisfied because the domicile of origin had revived (see paras [1]; [128]-[129]).

10 more judgments, and what each says about section 265, are in the case-law panel in the full Act.

Amendments and notes

8 notes from legislation.gov.uk

Amendments

  1. F667S. 265 substituted (6.4.2016) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 19 para. 7; S.I. 2016/191, art. 2 (with art. 3)
  2. F668S. 265(1)(ab) inserted (31.12.2020) by The Insolvency (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/146), reg. 1(3), Sch. para. 33(2)(a) (with regs. 4, 5); 2020 c. 1, Sch. 5 para. 1(1)
  3. F669Words in s. 265(1)(b) omitted (31.12.2020) by virtue of The Insolvency (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/146), reg. 1(3), Sch. para. 33(2)(b) (with regs. 4, 5); 2020 c. 1, Sch. 5 para. 1(1)
  4. F670Words in s. 265(4) substituted (26.6.2017) by The Insolvency Amendment (EU 2015/848) Regulations 2017 (S.I. 2017/702), reg. 1, Sch. para. 20 (with regs. 3, 4)
  5. F671S. 265(5) inserted (31.12.2020) by The Insolvency (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/146), reg. 1(3), Sch. para. 33(3) (with regs. 4, 5); 2020 c. 1, Sch. 5 para. 1(1)

Modifications

  1. C944S. 265 modified (1.12.1994) by S.I. 1994/2421, art. 11(2)(3), Sch. 7 para. 3
  2. C945S. 265 applied (with modifications) (1.12.1994) by S.I. 1994/2421, arts. 8(3)(9), 10(1)(a), Sch. 4 Pt. II para. 5, Sch. 6 (as amended (8.12.2017) by The Insolvency (Miscellaneous Amendments) Regulations 2017 (S.I. 2017/1119), reg. 1(1), Sch. 2 para. 3)
  3. C946S. 265 applied (with modifications) by S.I. 1986/1999, art. 3, Sch. 1 Pt. 2 (as amended (8.12.2017) by The Insolvency (Miscellaneous Amendments) Regulations 2017 (S.I. 2017/1119), reg. 1(1), Sch. 3 para. 1(2) and as amended (31.12.2020) by The Insolvency (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/146), reg. 1(3), Sch. para. 108(2)(a)(b) (with regs. 4, 5); 2020 c. 1, Sch. 5 para. 1(1))