Campden Hill Ltd v Chakrani & Ors

Campden Hill Ltd v Chakrani & Ors

Mr Chakrani did not authorise the loan transaction; his signature was forged by Mrs Karim. The Karim defendants are liable to the claimant for deceit, breach of undertaking, and breach of warranty of authority. The claimant is entitled to recover the £500,000 loan sum with interest, and damages for the facility fee discounted by 20% to reflect the chance that it would not have been enforceable as an extortionate credit bargain. The claimant is entitled to trace £229,271 into assets held by Mr Chakrani, including a lien on Pakistani land, but cannot trace into the £68,000 paid to Mr Iqbal due to the exhaustion of its funds in the client account. Change of position does not bar tracing into...

Parties
Claimant: Campden Hill Limited; 1st Defendant: Fazil Chakrani; 2nd Defendant: Saira Karim; 3rd Defendant: Imran Karim; 4th Defendant: Zahida Baloch; 5th Defendant: Shahida Baloch; 6th Defendant: Mohammed Iqbal; 7th Defendant: Shamim Akhtar Karim; 8th Defendant: HM Land Registry
Jurisdiction
England and Wales
Judgment Date
13 May 2005
Procedural Posture
Civil / Judgment After Trial
Outcome
Judgment for the claimant against the Karim defendants for £500,000 plus interest and damages for the facility fee discounted by 20%. Judgment for the claimant against Mr Chakrani for £229,271 traceable into assets, including a lien on Pakistani land. Claim against Mr Iqbal dismissed as to tracing but repayment of...
Legal Topics
Forgery, Breach of Trust, Tracing, Breach of Warranty of Authority, Deceit, Extortionate Credit Bargains, Damages, Change of Position Defence
Equity and Trusts Restitution Property Law Contract Law Forgery Breach of Trust Tracing Breach of Warranty of Authority +4 more

Case Brief

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Parties

Campden Hill Limited

Claimant

Fazil Chakrani

1st Defendant

Saira Karim

2nd Defendant

Imran Karim

3rd Defendant

Zahida Baloch

4th Defendant

Shahida Baloch

5th Defendant

Mohammed Iqbal

6th Defendant

Shamim Akhtar Karim

7th Defendant

HM Land Registry

8th Defendant

Procedural Posture

Civil / Judgment After Trial

Legal Issues

  1. 1 Whether Mr Chakrani authorised the loan and charge and is liable for repayment and facility fee
  2. 2 Whether the Karim defendants are liable for breach of warranty of authority, deceit, and breach of undertaking
  3. 3 Whether the facility fee is enforceable or extortionate under the Consumer Credit Act 1974

Ratio Decidendi

Mr Chakrani did not authorise the loan transaction; his signature was forged by Mrs Karim. The Karim defendants are liable to the claimant for deceit, breach of undertaking, and breach of warranty of authority. The claimant is entitled to recover the £500,000 loan sum with interest, and damages for the facility fee discounted by 20% to reflect the chance that it would not have been enforceable as an extortionate credit bargain. The claimant is entitled to trace £229,271 into assets held by Mr Chakrani, including a lien on Pakistani land, but cannot trace into the £68,000 paid to Mr Iqbal due to the exhaustion of its funds in the client account. Change of position does not bar tracing into...

Court Disposition

Judgment for the claimant against the Karim defendants for £500,000 plus interest and damages for the facility fee discounted by 20%. Judgment for the claimant against Mr Chakrani for £229,271 traceable into assets, including a lien on Pakistani land. Claim against Mr Iqbal dismissed as to tracing but repayment of...

Orders

  • Karim defendants to pay £500,000 plus interest to the claimant.
  • Karim defendants to pay damages for the facility fee less 20%.