Apollo Communications Centre Ltd (In Liquidation) & Ors v Rahmann & Ors [2007] EWHC 3467 (Ch) (14 June 2007)

Apollo Communications Centre Ltd (In Liquidation) & Ors v Rahmann & Ors [2007] EWHC 3467 (Ch) (14 June 2007)

The particulars of claim, as pleaded and with proposed amendments, disclose a reasonable cause of action against the ninth defendant for dishonest assistance and fraudulent trading. The claim sufficiently alleges that Apollo incurred VAT liability, was rendered insolvent by the fraudulent scheme, and that the ninth defendant knowingly or recklessly assisted in the diversion of funds. The pleading is not so deficient or unclear as to warrant strike out at this stage.

Citation
[2007] EWHC 3467 (Ch)
Parties
Claimants/respondents: Apollo Communications Centre Ltd (In Liquidation) & Ors.; Defendants/applicant: Rahmann & Ors.
Jurisdiction
England and Wales
Judgment Date
14 June 2007
Procedural Posture
Strike Out Application (civil, Chancery Division) / Interlocutory Application to Strike Out Particulars of Claim Against Ninth Defendant
Outcome
Application to strike out dismissed
Legal Topics
VAT Fraud, MTIC Fraud, Director's Fiduciary Duties, Fraudulent Trading, Dishonest Assistance, Strike Out Applications
Insolvency Taxation Company Law Equity VAT Fraud MTIC Fraud Director's Fiduciary Duties Fraudulent Trading +2 more

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Parties

Apollo Communications Centre Ltd (In Liquidation) & Ors.

Claimants/respondents

Rahmann & Ors.

Defendants/applicant

Procedural Posture

Strike Out Application (civil, Chancery Division) / Interlocutory Application to Strike Out Particulars of Claim Against Ninth Defendant

Legal Issues

  1. 1 Whether the particulars of claim disclose a reasonable cause of action against the ninth defendant
  2. 2 Whether the claim against the ninth defendant for dishonest assistance and fraudulent trading is sufficiently pleaded
  3. 3 Whether the pleaded facts amount to a VAT-liable transaction and insolvency

Ratio Decidendi

The particulars of claim, as pleaded and with proposed amendments, disclose a reasonable cause of action against the ninth defendant for dishonest assistance and fraudulent trading. The claim sufficiently alleges that Apollo incurred VAT liability, was rendered insolvent by the fraudulent scheme, and that the ninth defendant knowingly or recklessly assisted in the diversion of funds. The pleading is not so deficient or unclear as to warrant strike out at this stage.

Court Disposition

Application to strike out dismissed

Orders

  • Permission to amend particulars of claim to allege Gara's inability to pay is granted
  • Proceedings to continue against the ninth defendant