Deluxe Property Holdings Ltd v SCL Construction Ltd & Anor (Interim Relief) [2020] EWHC 2865 (TCC) (07 October 2020)

Deluxe Property Holdings Ltd v SCL Construction Ltd & Anor (Interim Relief) [2020] EWHC 2865 (TCC) (07 October 2020)

There is a serious issue to be tried as to whether SCL holds the section 80 VAT claim and any proceeds on trust for Deluxe, and Deluxe has a good arguable case for a proprietary remedy. Damages may not be an adequate remedy for Deluxe given SCL's financial position. The balance of convenience and justice favour granting interim proprietary relief to preserve the asset pending determination.

Citation
[2020] EWHC 2865 (TCC)
Parties
Claimant: Deluxe Property Holdings Limited; First Defendant: SCL Construction Limited; Second Defendant: HMRC
Jurisdiction
England and Wales
Judgment Date
07 October 2020
Procedural Posture
Application for Interim Relief in Support of a Part 8 Claim / Ex Parte Interim Application Hearing
Outcome
Interim proprietary injunction granted in favour of Deluxe Property Holdings Limited against SCL Construction Limited.
Legal Topics
Quistclose Trust, Constructive Trust, VAT Repayment, Proprietary Injunction, Unjust Enrichment, Interim Relief
Trusts Commercial Law Tax Law Civil Procedure Quistclose Trust Constructive Trust VAT Repayment Proprietary Injunction +2 more

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Parties

Deluxe Property Holdings Limited

Claimant

SCL Construction Limited

First Defendant

HMRC

Second Defendant

Procedural Posture

Application for Interim Relief in Support of a Part 8 Claim / Ex Parte Interim Application Hearing

Legal Issues

  1. 1 Whether SCL holds the section 80 VAT claim and/or any proceeds on trust for Deluxe
  2. 2 Whether Deluxe is entitled to interim proprietary relief over the VAT repayment or credit
  3. 3 Whether damages would be an adequate remedy for Deluxe

Ratio Decidendi

There is a serious issue to be tried as to whether SCL holds the section 80 VAT claim and any proceeds on trust for Deluxe, and Deluxe has a good arguable case for a proprietary remedy. Damages may not be an adequate remedy for Deluxe given SCL's financial position. The balance of convenience and justice favour granting interim proprietary relief to preserve the asset pending determination.

Court Disposition

Interim proprietary injunction granted in favour of Deluxe Property Holdings Limited against SCL Construction Limited.

Orders

  • SCL to pay any monies received from HMRC in respect of the section 80 VAT claim to Deluxe's solicitors to be held in a separate account pending further order.
  • SCL to provide information regarding the VAT claim, including any monies received, tax credits applied for, and details of payments, by 5pm on the Friday following service of the order.