Revenue & Customs (HMRC) v Sunico A/S & Ors [2012] EWHC 4156 (Ch) (16 October 2012)

Revenue & Customs (HMRC) v Sunico A/S & Ors [2012] EWHC 4156 (Ch) (16 October 2012)

The pleadings against Dayal and Nari did not adequately allege fraud or knowledge, nor provide sufficient particulars to sustain a claim for conspiracy. The evidence did not support the inferences required for fraud. Accordingly, both Dayal and Nari were entitled to summary judgment dismissing the conspiracy claim against them. The section 423 claim against Dayal was properly pleaded and triable, and should proceed to trial. HMRC was not permitted to amend its pleadings to introduce further particulars of knowledge at this late stage against Nari.

Citation
[2012] EWHC 4156 (Ch)
Parties
Applicant/claimant: HMRC; Respondent/defendant: Sunico A/S; Respondent/defendant: Sunil Kumar Harwani; Respondent/defendant: Mangharam Harwani; Respondent/defendant: Sunico Holdings APS; Respondent/defendant: M&B Holdings A/S; Respondent/defendant: PT Naina Exim Indo; Respondent/defendant: Hashu Dalomal Shahdadpuri; Respondent/defendant: Dayal Dalomal Shahdadpuri; Respondent/defendant: Nari Premchand
Jurisdiction
England and Wales
Judgment Date
16 October 2012
Procedural Posture
Civil (chancery Division) / Pre Trial Hearing; Applications for Summary Judgment and Amendments to Pleadings
Outcome
Summary judgment granted in favour of Dayal and Nari on the conspiracy claim; section 423 claim against Dayal to proceed to trial; HMRC refused permission to amend pleadings against Nari.
Legal Topics
Summary Judgment, Pleading Requirements for Fraud, Section 423 Insolvency Act 1986, Conspiracy, Amendment of Pleadings
Civil Procedure Fraud Insolvency Summary Judgment Pleading Requirements for Fraud Section 423 Insolvency Act 1986 Conspiracy Amendment of Pleadings

Case Brief

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Parties

HMRC

Applicant/claimant

Sunico A/S

Respondent/defendant

Sunil Kumar Harwani

Respondent/defendant

Mangharam Harwani

Respondent/defendant

Sunico Holdings APS

Respondent/defendant

M&B Holdings A/S

Respondent/defendant

PT Naina Exim Indo

Respondent/defendant

Hashu Dalomal Shahdadpuri

Respondent/defendant

Dayal Dalomal Shahdadpuri

Respondent/defendant

Nari Premchand

Respondent/defendant

Procedural Posture

Civil (chancery Division) / Pre Trial Hearing; Applications for Summary Judgment and Amendments to Pleadings

Legal Issues

  1. 1 Whether the pleadings against Dayal and Nari adequately allege fraud and knowledge to sustain a claim for conspiracy to defraud HMRC
  2. 2 Whether the alternative claim under section 423 Insolvency Act 1986 is properly pleaded and triable
  3. 3 Whether summary judgment should be granted in favour of Dayal and Nari on the conspiracy and/or section 423 claims

Ratio Decidendi

The pleadings against Dayal and Nari did not adequately allege fraud or knowledge, nor provide sufficient particulars to sustain a claim for conspiracy. The evidence did not support the inferences required for fraud. Accordingly, both Dayal and Nari were entitled to summary judgment dismissing the conspiracy claim against them. The section 423 claim against Dayal was properly pleaded and triable, and should proceed to trial. HMRC was not permitted to amend its pleadings to introduce further particulars of knowledge at this late stage against Nari.

Court Disposition

Summary judgment granted in favour of Dayal and Nari on the conspiracy claim; section 423 claim against Dayal to proceed to trial; HMRC refused permission to amend pleadings against Nari.

Orders

  • Conspiracy claim against Dayal and Nari dismissed.
  • Section 423 claim against Dayal to proceed to trial.