Umbrella Care Limited v Khair Un Nisa & Ors.

Umbrella Care Limited v Khair Un Nisa & Ors.

The Defendants are liable to pay equitable compensation and/or damages to the Company for breach of director's duties and/or knowing receipt, quantified as the Company's liability to HMRC less asset realisations, or the value of funds received less credits for realisations, as appropriate. The Company is entitled to rely on the Revenue's proof of debt for quantum. The criticisms and arguments of Mr Raja did not displace the Company's case on causation or quantum.

Parties
Claimant: Umbrella Care Limited (in liquidation); First Defendant: Khair Un Nisa; Second Defendant: Usman Khalid Raja; Third Defendant: Emil Cervenak; Fourth Defendant: Dynamic Int Limited; Fifth Defendant: Universal Real Estate (PVT) Limited; Sixth Defendant: Universal Total Care Limited; Seventh Defendant: First International Holdings Limited; Eighth Defendant: FI Holdings Limited
Jurisdiction
England and Wales
Judgment Date
08 December 2022
Procedural Posture
Civil (insolvency, Company Law, Breach of Fiduciary Duty, Knowing Receipt) / Quantum Assessment Following Summary Judgment on Liability
Outcome
Judgment for the Claimant against the Second, Third, Fourth, Fifth, and Sixth Defendants for equitable compensation/damages; action stayed against First Defendant; claims dismissed against Seventh and Eighth Defendants with no order as to costs.
Legal Topics
Breach of Fiduciary Duty, Knowing Receipt, Director's Duties, Equitable Compensation, Liquidation, Tracing of Assets
Company Law Insolvency Law Equity and Trusts Breach of Fiduciary Duty Knowing Receipt Director's Duties Equitable Compensation Liquidation +1 more

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Parties

Umbrella Care Limited (in liquidation)

Claimant

Khair Un Nisa

First Defendant

Usman Khalid Raja

Second Defendant

Emil Cervenak

Third Defendant

Dynamic Int Limited

Fourth Defendant

Universal Real Estate (PVT) Limited

Fifth Defendant

Universal Total Care Limited

Sixth Defendant

First International Holdings Limited

Seventh Defendant

FI Holdings Limited

Eighth Defendant

Procedural Posture

Civil (insolvency, Company Law, Breach of Fiduciary Duty, Knowing Receipt) / Quantum Assessment Following Summary Judgment on Liability

Legal Issues

  1. 1 Quantum of equitable compensation/damages for breach of director's duties and knowing receipt
  2. 2 Causation and calculation of loss to company
  3. 3 Assessment of liability for directors and recipient companies

Ratio Decidendi

The Defendants are liable to pay equitable compensation and/or damages to the Company for breach of director's duties and/or knowing receipt, quantified as the Company's liability to HMRC less asset realisations, or the value of funds received less credits for realisations, as appropriate. The Company is entitled to rely on the Revenue's proof of debt for quantum. The criticisms and arguments of Mr Raja did not displace the Company's case on causation or quantum.

Court Disposition

Judgment for the Claimant against the Second, Third, Fourth, Fifth, and Sixth Defendants for equitable compensation/damages; action stayed against First Defendant; claims dismissed against Seventh and Eighth Defendants with no order as to costs.

Orders

  • Mr Raja to pay £21,811,531.93 to the Company as equitable compensation/damages.
  • Mr Cervenak to pay £8,390,823.28 to the Company as equitable compensation/damages.