Malik v Hussain Jr & Ors

Malik v Hussain Jr & Ors

There was a partnership between Tariq and Mahboob in relation to the Stockport Road property and business, and the shares in the Stockport Road company (to the extent of 50 after 2009) are partnership assets. Nusrat and Mirza hold their shares absolutely. The partnership should be dissolved and wound up. Tariq has no claim to the Perivale Nawaab or company. The unfair prejudice petition fails. The counterclaim for breach of director duties also fails as all relevant acts were with knowledge or consent of both principal parties.

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
28 August 2020
Procedural Posture
Civil (partnership and Company Law) / Judgment After Trial
Outcome
Claim for partnership dissolution and winding up allowed; unfair prejudice petition dismissed; counterclaim dismissed.
Legal Topics
Existence and Dissolution of Partnership, Partnership Property, Resulting Trust, Share Allotment and Transfer, Unfair Prejudice Petition, Directors' Duties, Duomatic Principle, Counterclaim for Breach of Director Duties
Partnership Law Company Law Equity Existence and Dissolution of Partnership Partnership Property Resulting Trust Share Allotment and Transfer Unfair Prejudice Petition +3 more

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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

Civil (partnership and Company Law) / Judgment After Trial

Legal Issues

  1. 1 Whether a partnership existed between Tariq and Mahboob in relation to the Stockport Road property and business
  2. 2 Whether shares in the Stockport Road company were partnership property
  3. 3 Effect of share transfers/allotments to Nusrat and Mirza

Ratio Decidendi

There was a partnership between Tariq and Mahboob in relation to the Stockport Road property and business, and the shares in the Stockport Road company (to the extent of 50 after 2009) are partnership assets. Nusrat and Mirza hold their shares absolutely. The partnership should be dissolved and wound up. Tariq has no claim to the Perivale Nawaab or company. The unfair prejudice petition fails. The counterclaim for breach of director duties also fails as all relevant acts were with knowledge or consent of both principal parties.

Court Disposition

Claim for partnership dissolution and winding up allowed; unfair prejudice petition dismissed; counterclaim dismissed.

Orders

  • The partnership between Tariq and Mahboob is dissolved and to be wound up.
  • A final account is to be taken of the partnership assets, including valuation of the Stockport Road property and the partnership's 50% shareholding in the Stockport Road company.