Usman Hussain Malik v Nusrat Malik & Ors (Re RN Restaurant (Stockport) Limited)

Usman Hussain Malik v Nusrat Malik & Ors (Re RN Restaurant (Stockport) Limited)

The transfer of 2 shares by Nusrat Malik to Usman Malik was an unconditional gift, not subject to a resulting trust, misrepresentation, mistake, or undue influence. The evidence showed Nusrat intended to transfer the shares absolutely to achieve both short-term and long-term family and business objectives, and there was no basis to set aside the transfer.

Parties
Claimant: Usman Hussain Malik; First Defendant: Nusrat Malik; Second Defendant: Mahboob Hussain Junior; Third Defendant: R N Restaurant (Stockport) Limited
Jurisdiction
England and Wales
Judgment Date
11 October 2024
Procedural Posture
Part 8 Claim (companies Act 2006) / Final Trial and Judgment on Counterclaim
Outcome
Counterclaim dismissed; claim allowed
Legal Topics
Resulting Trusts, Misrepresentation, Mistake, Undue Influence, Share Transfers, Beneficial Ownership
Company Law Equity and Trusts Resulting Trusts Misrepresentation Mistake Undue Influence Share Transfers Beneficial Ownership

Case Brief

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Parties

Usman Hussain Malik

Claimant

Nusrat Malik

First Defendant

Mahboob Hussain Junior

Second Defendant

R N Restaurant (Stockport) Limited

Third Defendant

Procedural Posture

Part 8 Claim (companies Act 2006) / Final Trial and Judgment on Counterclaim

Legal Issues

  1. 1 Whether the transfer of 2 shares by Nusrat Malik to Usman Malik was a gift or held on resulting trust
  2. 2 Whether the transfer should be set aside for misrepresentation, mistake, or undue influence
  3. 3 Whether Usman Malik is the beneficial owner of the shares

Ratio Decidendi

The transfer of 2 shares by Nusrat Malik to Usman Malik was an unconditional gift, not subject to a resulting trust, misrepresentation, mistake, or undue influence. The evidence showed Nusrat intended to transfer the shares absolutely to achieve both short-term and long-term family and business objectives, and there was no basis to set aside the transfer.

Court Disposition

Counterclaim dismissed; claim allowed

Orders

  • Nusrat Malik's counterclaim is dismissed in its entirety.
  • Usman Malik is declared the legal and beneficial owner of the 2 shares in R N Restaurant (Stockport) Limited.