Patel & Anor v Barlows Solicitors (a firm) & Ors [2020] EWHC 2753 (Ch) (16 October 2020)

Patel & Anor v Barlows Solicitors (a firm) & Ors [2020] EWHC 2753 (Ch) (16 October 2020)

The court found, on the balance of probabilities, that a partnership existed between the First Claimant, the Bankrupt, and the Third Defendant for the acquisition and resale of the properties. The Settlement Amount is a partnership asset and must be applied first to repay the First Claimant's capital advance, with the remainder distributed equally among the partners. The Second Defendants are entitled to reasonable Trust Costs for collecting and realising the Settlement Amount, to be paid out of that sum.

Citation
[2020] EWHC 2753 (Ch)
Parties
First Claimant: Pravin Patel; Second Claimant: Nalini Patel; First Defendant: Barlows Solicitors; Second Defendants: Paul Stanley and Paul Barber (as joint trustees in bankruptcy of Drupad Chorera); Third Defendant: Mr Nirmal Tanna
Jurisdiction
England and Wales
Judgment Date
16 October 2020
Procedural Posture
Civil (chancery) / Final Judgment After Trial
Outcome
Claim allowed in part
Legal Topics
Partnership Existence, Trusts and Constructive Trusts, Bankruptcy Trustees' Duties, Distribution of Settlement Proceeds, Relief From Sanctions
Insolvency Trusts Partnership Property Partnership Existence Trusts and Constructive Trusts Bankruptcy Trustees' Duties Distribution of Settlement Proceeds +1 more

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Parties

Pravin Patel

First Claimant

Nalini Patel

Second Claimant

Barlows Solicitors

First Defendant

Paul Stanley and Paul Barber (as joint trustees in bankruptcy of Drupad Chorera)

Second Defendants

Mr Nirmal Tanna

Third Defendant

Procedural Posture

Civil (chancery) / Final Judgment After Trial

Legal Issues

  1. 1 Whether a partnership existed between the Joint Venturers for the purchase of the properties
  2. 2 Whether the Settlement Amount is held on trust by the Second Defendants for the First Claimant
  3. 3 Whether the Second Defendants are entitled to payment of Trust Costs from the Settlement Amount

Ratio Decidendi

The court found, on the balance of probabilities, that a partnership existed between the First Claimant, the Bankrupt, and the Third Defendant for the acquisition and resale of the properties. The Settlement Amount is a partnership asset and must be applied first to repay the First Claimant's capital advance, with the remainder distributed equally among the partners. The Second Defendants are entitled to reasonable Trust Costs for collecting and realising the Settlement Amount, to be paid out of that sum.

Court Disposition

Claim allowed in part

Orders

  • Declaration that a partnership existed between the First Claimant, the Bankrupt, and the Third Defendant for the purchase of the properties
  • Settlement Amount to be applied first to repay the First Claimant's capital advance (£210,515), remainder to be distributed equally among partners