Deluxe Property Holdings Ltd v SCL Construction & Anor (Injunction Continuance) [2020] EWHC 3066 (TCC) (21 October 2020)

Deluxe Property Holdings Ltd v SCL Construction & Anor (Injunction Continuance) [2020] EWHC 3066 (TCC) (21 October 2020)

There is a serious issue to be tried as to whether the VAT repayment is held on trust for Deluxe and whether SCL must pay over the sums by cash/cheque or may credit Deluxe. Damages would not be an adequate remedy for Deluxe due to SCL's weak financial position. The balance of convenience favours continuation of the injunction to preserve the disputed funds and require disclosure pending final determination.

Citation
[2020] EWHC 3066 (TCC)
Parties
Claimant: Deluxe Property Holdings Limited; First Defendant: SCL Construction; Second Defendant: Her Majesty's Revenue and Customs
Jurisdiction
England and Wales
Judgment Date
21 October 2020
Procedural Posture
Injunction (part 8 Proceedings) / Return Date Hearing on Continuation of Interim Injunction
Outcome
Interim injunction continued pending determination of the substantive issues.
Legal Topics
VAT Reimbursement, Constructive Trust, Quistclose Trust, Interim Injunction, Part 8 Proceedings
Commercial Law Construction Law Trusts Law VAT Reimbursement Constructive Trust Quistclose Trust Interim Injunction Part 8 Proceedings

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 2 Authorities cited 3 Party arguments 2 Amounts and remedies 6
Sign in to unlock

Parties

Deluxe Property Holdings Limited

Claimant

SCL Construction

First Defendant

Her Majesty's Revenue and Customs

Second Defendant

Procedural Posture

Injunction (part 8 Proceedings) / Return Date Hearing on Continuation of Interim Injunction

Legal Issues

  1. 1 Whether sums repaid by HMRC to SCL are held on trust (constructive or Quistclose) for Deluxe
  2. 2 Whether SCL must pay over VAT rebate to Deluxe by cash/cheque or may credit Deluxe
  3. 3 Whether injunction should continue pending determination of trust issue

Ratio Decidendi

There is a serious issue to be tried as to whether the VAT repayment is held on trust for Deluxe and whether SCL must pay over the sums by cash/cheque or may credit Deluxe. Damages would not be an adequate remedy for Deluxe due to SCL's weak financial position. The balance of convenience favours continuation of the injunction to preserve the disputed funds and require disclosure pending final determination.

Court Disposition

Interim injunction continued pending determination of the substantive issues.

Orders

  • SCL to continue to pay any VAT repayment sums received from HMRC to Deluxe's solicitors.
  • SCL to provide further information and affidavit regarding the VAT rebate and whereabouts of funds.