Chetan Khera v Palladian Capital Limited & Anor

Chetan Khera v Palladian Capital Limited & Anor

There was no real or substantial dispute regarding the debts owed to Chetan Khera by either company. The alleged assignment of the director's loan account was not established by evidence or documentation and was conditional on a broader agreement that was never reached. The alleged derivative claim by Dara Khera on behalf of Penfold was not genuine or substantial, was raised late, and was unsupported by contemporaneous evidence. Both companies are insolvent and deadlocked, and it is appropriate to make winding up orders.

Parties
Petitioner: Chetan Khera; First Respondent: Palladian Capital Limited; Second Respondent: Palladian (Penfold) Limited; Creditor of Second Respondent: Two Work Ltd; Member of Second Respondent / Contributory: Dara Khera
Jurisdiction
England and Wales
Judgment Date
11 October 2024
Procedural Posture
Insolvency (winding Up Petitions) / Final Hearing and Judgment
Outcome
Petitions allowed; winding up orders granted against both Palladian Capital Limited and Palladian (Penfold) Limited.
Legal Topics
Winding Up Petitions, Director's Loan Accounts, Assignment of Debt, Derivative Actions, Cross Claims, Breach of Director's Duties, Deadlock in Companies
Insolvency Law Company Law Winding Up Petitions Director's Loan Accounts Assignment of Debt Derivative Actions Cross Claims Breach of Director's Duties +1 more

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Parties

Chetan Khera

Petitioner

Palladian Capital Limited

First Respondent

Palladian (Penfold) Limited

Second Respondent

Two Work Ltd

Creditor of Second Respondent

Dara Khera

Member of Second Respondent / Contributory

Procedural Posture

Insolvency (winding Up Petitions) / Final Hearing and Judgment

Legal Issues

  1. 1 Whether the debts claimed by the petitioner are due and undisputed
  2. 2 Whether there was a genuine and substantial cross-claim or set-off exceeding the petition debt
  3. 3 Whether the director's loan account was assigned to Dara Khera

Ratio Decidendi

There was no real or substantial dispute regarding the debts owed to Chetan Khera by either company. The alleged assignment of the director's loan account was not established by evidence or documentation and was conditional on a broader agreement that was never reached. The alleged derivative claim by Dara Khera on behalf of Penfold was not genuine or substantial, was raised late, and was unsupported by contemporaneous evidence. Both companies are insolvent and deadlocked, and it is appropriate to make winding up orders.

Court Disposition

Petitions allowed; winding up orders granted against both Palladian Capital Limited and Palladian (Penfold) Limited.

Orders

  • Palladian Capital Limited to be wound up compulsorily on the petition of Chetan Khera.
  • Palladian (Penfold) Limited to be wound up compulsorily on the petition of Chetan Khera.