Abdul Rahman Hayel v Abdul Aziz Hayel & Anor

Abdul Rahman Hayel v Abdul Aziz Hayel & Anor

The partnership was dissolved by agreement on 31 May 2018 and must be wound up. The partnership accounts for 2008 and 2016 contained serious and significant errors, specifically the erroneous attribution of drawings and misapplication of partnership funds by the Claimant, which must be corrected. The errors are not excused by the passage of time or the apparent acquiescence of the First Defendant, given his lack of understanding and the Claimant's control over the accounts. The documents signed on 28 May 2018 were not intended to be legally binding and do not govern the winding up.

Parties
Claimant: Abdul Rahman Hayel; First Defendant: Abdul Aziz Hayel (a protected party, by Tarek Hayel, his litigation friend); Second Defendant: Nageeb Hayel
Jurisdiction
England and Wales
Judgment Date
26 November 2024
Procedural Posture
Partnership Action / Judgment After Trial
Outcome
Partnership dissolved and to be wound up; errors in accounts to be corrected; further accounts and enquiries to be taken as necessary; parties to have permission to apply; costs reserved.
Legal Topics
Dissolution of Partnership, Winding Up of Partnership, Correction of Partnership Accounts, Surcharge and Falsification of Accounts, Binding Effect of Signed Accounts, Errors in Partnership Accounts
Partnership Law Equity Civil Procedure Dissolution of Partnership Winding Up of Partnership Correction of Partnership Accounts Surcharge and Falsification of Accounts Binding Effect of Signed Accounts +1 more

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Parties

Abdul Rahman Hayel

Claimant

Abdul Aziz Hayel (a protected party, by Tarek Hayel, his litigation friend)

First Defendant

Nageeb Hayel

Second Defendant

Procedural Posture

Partnership Action / 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

Ratio Decidendi

The partnership was dissolved by agreement on 31 May 2018 and must be wound up. The partnership accounts for 2008 and 2016 contained serious and significant errors, specifically the erroneous attribution of drawings and misapplication of partnership funds by the Claimant, which must be corrected. The errors are not excused by the passage of time or the apparent acquiescence of the First Defendant, given his lack of understanding and the Claimant's control over the accounts. 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 to be taken as necessary; parties to have permission to apply; costs reserved.

Orders

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