Hidayat Ullah v Mohammed Anf Ullah & Anor

Hidayat Ullah v Mohammed Anf Ullah & Anor

The Judge erred in striking out the claim and refusing permission to amend. The Appellant has a strongly arguable case that the Respondent breached the fair dealing rule and fiduciary duty by failing to disclose the true beneficial ownership and submitting a false proof of debt, thereby profiting from his own wrong. The Trustee's knowledge of the dispute did not amount to full disclosure or acquiescence. The assignment is liable to be set aside unless the Respondent can prove full disclosure and fairness. The claim is not abusive or caught by res judicata as it relates to post-trial conduct.

Parties
Claimant/appellant: Hidayat Ullah; Defendant/respondent: Mohammed Anf Ullah; Defendant/respondent: Mohammed Tarik Ullah
Jurisdiction
England and Wales
Judgment Date
11 October 2024
Procedural Posture
Civil Appeal / Appeal Against Order Striking Out Claim and Refusing Permission to Re Amend Pleadings
Outcome
Appeal allowed; strike out and refusal to amend set aside; claim and amendments permitted to proceed to trial.
Legal Topics
Fair Dealing Rule, Fiduciary Duty, Constructive Trust, Breach of Trust, Self Dealing, Acquiescence, Res Judicata, Summary Judgment, Strike Out, Assignment of Rights, Bankruptcy
Trusts Equity Insolvency Fair Dealing Rule Fiduciary Duty Constructive Trust Breach of Trust Self Dealing +6 more

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Parties

Hidayat Ullah

Claimant/appellant

Mohammed Anf Ullah

Defendant/respondent

Mohammed Tarik Ullah

Defendant/respondent

Procedural Posture

Civil Appeal / Appeal Against Order Striking Out Claim and Refusing Permission to Re Amend Pleadings

Legal Issues

  1. 1 Whether the Respondent breached the fair dealing rule and fiduciary duty in acquiring trust property via assignment from Trustee in Bankruptcy
  2. 2 Whether the Respondent made fraudulent or negligent misrepresentations regarding beneficial ownership and proof of debt
  3. 3 Whether the Trustee in Bankruptcy acquiesced in any breach

Ratio Decidendi

The Judge erred in striking out the claim and refusing permission to amend. The Appellant has a strongly arguable case that the Respondent breached the fair dealing rule and fiduciary duty by failing to disclose the true beneficial ownership and submitting a false proof of debt, thereby profiting from his own wrong. The Trustee's knowledge of the dispute did not amount to full disclosure or acquiescence. The assignment is liable to be set aside unless the Respondent can prove full disclosure and fairness. The claim is not abusive or caught by res judicata as it relates to post-trial conduct.

Court Disposition

Appeal allowed; strike out and refusal to amend set aside; claim and amendments permitted to proceed to trial.

Orders

  • Claim reinstated and permitted to proceed to trial
  • Permission granted to amend pleadings as proposed