Ingram & Anor v Ahmed & Ors

Ingram & Anor v Ahmed & Ors

The trustees are entitled to compensation for the diminution in value of the shares between the date of void transfer and the date of return, as the respondents' wrongful retention prevented timely realisation and caused loss. The shares are to be valued at fair value as at the date of transfer, with credit for their value at the date of return. Actual loss is established by expert evidence. The third to fifth respondents are jointly liable as parties to the void transfers and validation applications.

Parties
Applicant/claimant/trustee in Bankruptcy: David Ingram; Applicant/claimant/trustee in Bankruptcy: Michaela Hall; Respondent/defendant/debtor: Eatisham Ahmed; Respondent/defendant: Kashif Ahmed; Respondent/defendant: Bushra Ahmed; Respondent/defendant: Tesneem Ahmed; Respondent/defendant: Tabasum Ahmed
Jurisdiction
England and Wales
Judgment Date
29 June 2016
Procedural Posture
Bankruptcy/trustee Application / Judgment After Trial
Outcome
Judgment for the applicants (trustees) against the second to fifth respondents; shares to be valued at fair value as at date of transfer, less value at date of return; third to fifth respondents jointly liable; only simple interest recoverable, rate and period to be determined.
Legal Topics
Void Dispositions After Bankruptcy Petition, Restitution, Valuation of Shares, Breach of Fiduciary Duty, Equitable Compensation
Insolvency Bankruptcy Trusts and Equity Void Dispositions After Bankruptcy Petition Restitution Valuation of Shares Breach of Fiduciary Duty Equitable Compensation

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Parties

David Ingram

Applicant/claimant/trustee in Bankruptcy

Michaela Hall

Applicant/claimant/trustee in Bankruptcy

Eatisham Ahmed

Respondent/defendant/debtor

Kashif Ahmed

Respondent/defendant

Bushra Ahmed

Respondent/defendant

Tesneem Ahmed

Respondent/defendant

Tabasum Ahmed

Respondent/defendant

Procedural Posture

Bankruptcy/trustee Application / Judgment After Trial

Legal Issues

  1. 1 Whether trustees are entitled to relief for the value of shares transferred in breach of s.284 Insolvency Act 1986 after restoration of the shares
  2. 2 Whether actual loss must be pleaded and proved for compensation
  3. 3 Appropriate date and method for valuation of shares wrongfully transferred

Ratio Decidendi

The trustees are entitled to compensation for the diminution in value of the shares between the date of void transfer and the date of return, as the respondents' wrongful retention prevented timely realisation and caused loss. The shares are to be valued at fair value as at the date of transfer, with credit for their value at the date of return. Actual loss is established by expert evidence. The third to fifth respondents are jointly liable as parties to the void transfers and validation applications.

Court Disposition

Judgment for the applicants (trustees) against the second to fifth respondents; shares to be valued at fair value as at date of transfer, less value at date of return; third to fifth respondents jointly liable; only simple interest recoverable, rate and period to be determined.

Orders

  • Shares to be valued at £2,216,000 as at 5/6 June 2007 (date of transfer), less value as at 27 February 2015 (date of return), with final value to be determined after further expert evidence if necessary.
  • Second to fifth respondents jointly and severally liable for the loss.