Malik v Mahboob Hussain Junior & Ors

Malik v Mahboob Hussain Junior & Ors

Given the breakdown of the partnership and the competing interests, the fairest course is to order a sale of the partnership assets (property and company share) as a unit, with a reserve at the court-determined valuation, followed by a buy-out by Mahboob if no sale is achieved. The sale process must include safeguards to prevent tactical or bad faith bidding, and the valuations must be conducted on a consistent and fair basis reflecting market realities and the impact of Covid-19.

Parties
Claimant/petitioner: Tariq Mahmood Malik; First Defendant/respondent: Mahboob Hussain Junior; Second Defendant/respondent: RN Restaurant (Stockport) Limited; Third Defendant/respondent: Nusrat Tariq; Fourth Defendant/respondent: Mirza Begum; Fifth Defendant/respondent: Asad Ali Malik; Sixth Defendant/respondent: Usman Hussain Malik
Jurisdiction
England and Wales
Judgment Date
26 May 2021
Procedural Posture
Partnership Dissolution and Final Account / Judgment on Taking of Final Account After Dissolution and Winding Up
Outcome
Sale of partnership assets as a unit with reserve at court valuation, followed by buy-out if no sale; directions for further valuation and sale process to be given.
Legal Topics
Dissolution of Partnership, Winding Up of Partnership, Valuation of Partnership Assets, Buy Out Versus Sale of Partnership Share, Court Discretion in Partnership Asset Realisation
Partnership Law Company Law Civil Procedure Dissolution of Partnership Winding Up of Partnership Valuation of Partnership Assets Buy Out Versus Sale of Partnership Share Court Discretion in Partnership Asset Realisation

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Parties

Tariq Mahmood Malik

Claimant/petitioner

Mahboob Hussain Junior

First Defendant/respondent

RN Restaurant (Stockport) Limited

Second Defendant/respondent

Nusrat Tariq

Third Defendant/respondent

Mirza Begum

Fourth Defendant/respondent

Asad Ali Malik

Fifth Defendant/respondent

Usman Hussain Malik

Sixth Defendant/respondent

Procedural Posture

Partnership Dissolution and Final Account / Judgment on Taking of Final Account After Dissolution and Winding Up

Legal Issues

  1. 1 Whether the partnership assets should be sold on the open market or subject to a buy-out by one partner
  2. 2 How the Stockport Road property and company should be valued for the purposes of the final account
  3. 3 Whether the sale process should include safeguards against tactical bidding

Ratio Decidendi

Given the breakdown of the partnership and the competing interests, the fairest course is to order a sale of the partnership assets (property and company share) as a unit, with a reserve at the court-determined valuation, followed by a buy-out by Mahboob if no sale is achieved. The sale process must include safeguards to prevent tactical or bad faith bidding, and the valuations must be conducted on a consistent and fair basis reflecting market realities and the impact of Covid-19.

Court Disposition

Sale of partnership assets as a unit with reserve at court valuation, followed by buy-out if no sale; directions for further valuation and sale process to be given.

Orders

  • Stockport Road property and 50% share in RN Restaurant (Stockport) Limited to be sold as a unit with a reserve at the court valuation.
  • Sale to be conducted by an independent agent with discretion over process, including proof of funds and deposit requirements.