QEB Metallics Ltd v Peerzada & Ors [2009] EWHC 3348 (Ch) (22 December 2009)

QEB Metallics Ltd v Peerzada & Ors [2009] EWHC 3348 (Ch) (22 December 2009)

Mr Hafiz was found to be the controlling mind and de facto director of QEB, orchestrating a scheme to defraud HMRC of VAT. He owed fiduciary duties to QEB, breached those duties, and was knowingly party to fraudulent trading. He is liable under ss 212-213 Insolvency Act 1986 to compensate QEB for the VAT lost, amounting to £2,141,510.80, with simple interest. Mr Peerzada, as director, is also liable for £988,357.08.

Citation
[2009] EWHC 3348 (Ch)
Parties
Claimant: QEB Metallics Limited (by its Joint Liquidators, David Ingram and Kevin Murphy); First Defendant: Aslam Peerzada; Second Defendant: Adnan Mohammad Khan (also known as Eddy Khan); Third Defendant: Nouman Hafiz
Jurisdiction
England and Wales
Judgment Date
22 December 2009
Procedural Posture
Civil (chancery Division) / Judgment After Trial
Outcome
Judgment for the claimant against the first defendant for £988,357.08 and against the third defendant for £2,141,510.80, both with simple interest.
Legal Topics
Director's Fiduciary Duties, De Facto and Shadow Directors, Fraudulent Trading, Misfeasance, VAT Fraud, Equitable Compensation
Insolvency Company Law Fraud Director's Fiduciary Duties De Facto and Shadow Directors Fraudulent Trading Misfeasance VAT Fraud +1 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 5 Authorities cited 8 Party arguments 2 Amounts and remedies 2
Sign in to unlock

Parties

QEB Metallics Limited (by its Joint Liquidators, David Ingram and Kevin Murphy)

Claimant

Aslam Peerzada

First Defendant

Adnan Mohammad Khan (also known as Eddy Khan)

Second Defendant

Nouman Hafiz

Third Defendant

Procedural Posture

Civil (chancery Division) / Judgment After Trial

Legal Issues

  1. 1 Whether the defendants, particularly Mr Hafiz, were de facto or shadow directors of QEB and owed fiduciary duties
  2. 2 Whether the defendants were liable for misfeasance, breach of fiduciary duty, or fraudulent trading under the Insolvency Act 1986
  3. 3 Whether the defendants were liable to compensate QEB for VAT fraud losses

Ratio Decidendi

Mr Hafiz was found to be the controlling mind and de facto director of QEB, orchestrating a scheme to defraud HMRC of VAT. He owed fiduciary duties to QEB, breached those duties, and was knowingly party to fraudulent trading. He is liable under ss 212-213 Insolvency Act 1986 to compensate QEB for the VAT lost, amounting to £2,141,510.80, with simple interest. Mr Peerzada, as director, is also liable for £988,357.08.

Court Disposition

Judgment for the claimant against the first defendant for £988,357.08 and against the third defendant for £2,141,510.80, both with simple interest.

Orders

  • First defendant to pay £988,357.08 plus simple interest.
  • Third defendant to pay £2,141,510.80 plus simple interest.