Hayel v Hayel & Ors [2024] EWHC 885 (Ch) (19 April 2024)

Hayel v Hayel & Ors [2024] EWHC 885 (Ch) (19 April 2024)

The partnership was dissolved by agreement on 31 May 2018 and must be wound up. Although the accounts in question were settled and generally binding, significant errors were established in the 2008, 2016, and 2018 accounts due to misapplication of funds and incorrect entries. These errors must be corrected, but the accounts are not to be reopened in their entirety. The documents signed on 28 May 2018 were not intended to be legally binding and do not govern the winding up.

Citation
[2024] EWHC 885 (Ch)
Parties
Claimant: Abdul Rahman Hayel; First Defendant: Abdul Aziz Hayel; Second Defendant: Nageeb Hayel
Jurisdiction
England and Wales
Judgment Date
19 April 2024
Procedural Posture
Partnership Action / Final Judgment After Trial
Outcome
Partnership dissolved and to be wound up; errors in accounts to be corrected; further accounts and enquiries as necessary; parties have permission to apply.
Legal Topics
Dissolution of Partnership, Winding Up of Partnership, Correction of Partnership Accounts, Surcharge and Falsification of Accounts, Binding Nature of Settled Accounts
Partnership Law Equity Dissolution of Partnership Winding Up of Partnership Correction of Partnership Accounts Surcharge and Falsification of Accounts Binding Nature of Settled Accounts

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Parties

Abdul Rahman Hayel

Claimant

Abdul Aziz Hayel

First Defendant

Nageeb Hayel

Second Defendant

Procedural Posture

Partnership Action / Final Judgment After Trial

Legal Issues

  1. 1 Whether the partnership was dissolved on 31 May 2018
  2. 2 Whether the partnership should be wound up
  3. 3 Whether settled partnership accounts should be reopened or surcharged/falsified due to errors

Ratio Decidendi

The partnership was dissolved by agreement on 31 May 2018 and must be wound up. Although the accounts in question were settled and generally binding, significant errors were established in the 2008, 2016, and 2018 accounts due to misapplication of funds and incorrect entries. These errors must be corrected, but the accounts are not to be reopened in their entirety. The documents signed on 28 May 2018 were not intended to be legally binding and do not govern the winding up.

Court Disposition

Partnership dissolved and to be wound up; errors in accounts to be corrected; further accounts and enquiries as necessary; parties have permission to apply.

Orders

  • Declaration that the partnership was dissolved on 31 May 2018
  • Order that the affairs of the partnership be wound up