Pathania v Adedeji & Ors

Pathania v Adedeji & Ors

The appeal was dismissed because Dr Adedeji failed to prove that the cause of action vested in a trustee before judgment or that Mr Pathania knew of such vesting. Even if there was non-disclosure, it was not so serious as to justify setting aside the judgment, and the likely outcome would have been a stay and subsequent assignment or authorisation. The judgment was not void, and any technical defect could be ratified by the court.

Parties
Claimant/respondent: Rajesh Pathania; First Defendant/appellant: Edmond Adefolu Adedeji; Second Defendant/appellant: Grace Adebole Ajayi; Intervener: Bank of Scotland PLC
Jurisdiction
England and Wales
Judgment Date
21 May 2014
Procedural Posture
Civil Appeal / Appeal From High Court Judgment and Consequential Order
Outcome
Appeal dismissed
Legal Topics
Effect of Bankruptcy on Ongoing Litigation, Assignment of Causes of Action in Bankruptcy, Abuse of Process, Disclosure Obligations in Bankruptcy, Ratification of Void Dispositions
Bankruptcy Civil Procedure Effect of Bankruptcy on Ongoing Litigation Assignment of Causes of Action in Bankruptcy Abuse of Process Disclosure Obligations in Bankruptcy Ratification of Void Dispositions

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Parties

Rajesh Pathania

Claimant/respondent

Edmond Adefolu Adedeji

First Defendant/appellant

Grace Adebole Ajayi

Second Defendant/appellant

Bank of Scotland PLC

Intervener

Procedural Posture

Civil Appeal / Appeal From High Court Judgment and Consequential Order

Legal Issues

  1. 1 Whether a claimant's bankruptcy during proceedings deprives him of standing to continue the action and vitiates the judgment
  2. 2 Whether non-disclosure of bankruptcy by the claimant justifies setting aside the judgment
  3. 3 Whether the cause of action vested in a trustee before judgment and the effect thereof

Ratio Decidendi

The appeal was dismissed because Dr Adedeji failed to prove that the cause of action vested in a trustee before judgment or that Mr Pathania knew of such vesting. Even if there was non-disclosure, it was not so serious as to justify setting aside the judgment, and the likely outcome would have been a stay and subsequent assignment or authorisation. The judgment was not void, and any technical defect could be ratified by the court.

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed
  • Bank's unopposed application granted: any sums recovered on the judgment to be paid into court to await outcome of Bank's claims