Scenic International Group Limited v Richard Adenaike & Ors

Scenic International Group Limited v Richard Adenaike & Ors

Applicants have no real prospect of defending the claims for fraudulent breach of director's duties, dishonest assistance, and knowing receipt. The evidence overwhelmingly supports the existence of a fraudulent scheme to evade VAT and PAYE/NIC, and the Applicants' explanations are not credible or supported by evidence. Default judgments should not be set aside, but should be varied as to quantum for certain Defendants to reflect proper assessment of loss.

Parties
Claimant: Scenic International Group Limited (In Provisional Liquidation); First Defendant: Richard Adenaike; Second Defendant: Andrew Peters; Third Defendant: AIGG Holdings Ltd; Fourth Defendant: Employment Law & HR Solutions Ltd; Fifth Defendant: Joyce Ezed; Sixth Defendant: Brasaa Corporation U.K Limited; Seventh Defendant: Sam Adenaike; Eighth Defendant: Leah Adenaike
Jurisdiction
England and Wales
Judgment Date
11 August 2024
Procedural Posture
Civil (fraud, Company Law) / Application to Set Aside Default Judgments
Outcome
Application to set aside default judgments refused; default judgments against D1, ELHR, and Ms Ezed varied to liability only with assessment of damages; further hearing required for BCUK.
Legal Topics
Director's Duties, Dishonest Assistance, Knowing Receipt, Fraudulent Evasion of Tax, Default Judgment, Equitable Compensation
Company Law Equity and Trusts Civil Procedure Tax Law Director's Duties Dishonest Assistance Knowing Receipt Fraudulent Evasion of Tax +2 more

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Parties

Scenic International Group Limited (In Provisional Liquidation)

Claimant

Richard Adenaike

First Defendant

Andrew Peters

Second Defendant

AIGG Holdings Ltd

Third Defendant

Employment Law & HR Solutions Ltd

Fourth Defendant

Joyce Ezed

Fifth Defendant

Brasaa Corporation U.K Limited

Sixth Defendant

Sam Adenaike

Seventh Defendant

Leah Adenaike

Eighth Defendant

Procedural Posture

Civil (fraud, Company Law) / Application to Set Aside Default Judgments

Legal Issues

  1. 1 Whether the Applicants have a real prospect of defending claims for fraudulent breach of director's duties, dishonest assistance, and knowing receipt
  2. 2 Whether default judgments should be set aside or varied
  3. 3 Proper quantification of equitable compensation for fraudulent evasion of VAT and PAYE/NIC

Ratio Decidendi

Applicants have no real prospect of defending the claims for fraudulent breach of director's duties, dishonest assistance, and knowing receipt. The evidence overwhelmingly supports the existence of a fraudulent scheme to evade VAT and PAYE/NIC, and the Applicants' explanations are not credible or supported by evidence. Default judgments should not be set aside, but should be varied as to quantum for certain Defendants to reflect proper assessment of loss.

Court Disposition

Application to set aside default judgments refused; default judgments against D1, ELHR, and Ms Ezed varied to liability only with assessment of damages; further hearing required for BCUK.

Orders

  • Default judgments against D1, ELHR, and Ms Ezed varied to liability only; assessment of damages to follow.
  • Interim payments to be considered at further hearing.