Ahuja Investments Ltd v Victorygame Ltd & Anor [2021] EWHC 2730 (Ch) (16 September 2021)

Ahuja Investments Ltd v Victorygame Ltd & Anor [2021] EWHC 2730 (Ch) (16 September 2021)

Where both parties have engaged in dishonest conduct but the defendants are the successful parties, the claimant is ordered to pay 75% of the defendants' costs on the standard basis up to the effective date of the Part 36 offer, and on the indemnity basis thereafter, with the consequences of CPR 36.17(4) applying. The dishonesty of both sides justifies a reduction but not a wholesale deprivation of costs to the successful party. The contractual costs provision does not override the court's discretion in these circumstances.

Citation
[2021] EWHC 2730 (Ch)
Parties
Claimant: Ahuja Investments Limited; First Defendant: Victorygame Limited; Second Defendant: Surjit Singh Pandher
Jurisdiction
England and Wales
Judgment Date
16 September 2021
Procedural Posture
Civil (business and Property Courts) / Judgment on Costs Following Trial and Counterclaim
Outcome
Claim dismissed; judgment for first defendant on counterclaim; costs awarded to defendants subject to reduction.
Legal Topics
Costs, Fraudulent Misrepresentation, Breach of Contract, Counterclaim, Part 36 Offers, Indemnity Costs, Standard Basis Costs, Contractual Costs Provisions
Civil Procedure Contract Law Fraud Costs Fraudulent Misrepresentation Breach of Contract Counterclaim Part 36 Offers +3 more

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Parties

Ahuja Investments Limited

Claimant

Victorygame Limited

First Defendant

Surjit Singh Pandher

Second Defendant

Procedural Posture

Civil (business and Property Courts) / Judgment on Costs Following Trial and Counterclaim

Legal Issues

  1. 1 Appropriate costs order where both parties have engaged in dishonest conduct
  2. 2 Effect of Part 36 offer on costs
  3. 3 Impact of contractual costs provisions on court's discretion

Ratio Decidendi

Where both parties have engaged in dishonest conduct but the defendants are the successful parties, the claimant is ordered to pay 75% of the defendants' costs on the standard basis up to the effective date of the Part 36 offer, and on the indemnity basis thereafter, with the consequences of CPR 36.17(4) applying. The dishonesty of both sides justifies a reduction but not a wholesale deprivation of costs to the successful party. The contractual costs provision does not override the court's discretion in these circumstances.

Court Disposition

Claim dismissed; judgment for first defendant on counterclaim; costs awarded to defendants subject to reduction.

Orders

  • Claimant to pay 75% of defendants' costs of claim and counterclaim up to effective date (17 February 2021) on standard basis.
  • From effective date, claimant to pay 75% of defendants' costs on indemnity basis, with interest at 10.1% per annum.