Scenic International Group Ltd v Adenaike & Ors [2024] EWHC 2791 (Ch) (05 November 2024)

Scenic International Group Ltd v Adenaike & Ors [2024] EWHC 2791 (Ch) (05 November 2024)

Applicants have no real prospect of defending claims that the Company was used as a vehicle for fraudulent evasion of VAT and PAYE/NIC. The evidence overwhelmingly supports the Claimant's case of deliberate fraud, misuse of VAT registration, and breach of directors' duties. Default judgments should not be set aside, but must be varied as to quantum for D1, ELHR, and Ms Ezed to allow proper assessment of damages. BCUK's position requires further submissions.

Citation
[2024] EWHC 2791 (Ch)
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
05 November 2024
Procedural Posture
Civil Company/commercial / Application to Set Aside Default Judgments; Post Judgment Interlocutory
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
Directors' Duties, Fraudulent Trading, Dishonest Assistance, Knowing Receipt, Equitable Compensation, VAT and Paye/nic Evasion, Default Judgment, Provisional Liquidation
Company Law Equity and Trusts Tax Law Civil Procedure Directors' Duties Fraudulent Trading Dishonest Assistance Knowing Receipt +4 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 Company/commercial / Application to Set Aside Default Judgments; Post Judgment Interlocutory

Legal Issues

  1. 1 Whether default judgments against the Applicants should be set aside under CPR 13.3(1)
  2. 2 Whether the Applicants have a real prospect of defending claims of fraudulent breach of duty, dishonest assistance, and knowing receipt
  3. 3 Proper quantification of equitable compensation for fraudulent evasion of VAT and PAYE/NIC

Ratio Decidendi

Applicants have no real prospect of defending claims that the Company was used as a vehicle for fraudulent evasion of VAT and PAYE/NIC. The evidence overwhelmingly supports the Claimant's case of deliberate fraud, misuse of VAT registration, and breach of directors' duties. Default judgments should not be set aside, but must be varied as to quantum for D1, ELHR, and Ms Ezed to allow proper assessment of damages. BCUK's position requires further submissions.

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; damages to be assessed.
  • Interim payments to be considered at further hearing.