Red River UK Ltd & Anor v Sheikh & Anor

Red River UK Ltd & Anor v Sheikh & Anor

The defendants, by their deliberate actions in presenting a winding up petition and communicating with the Bank of Ireland, sabotaged the composite refinancing transaction contemplated by the Settlement Agreement. This constituted a fundamental and repudiatory breach, entitling the claimants to treat the contract as discharged and excusing them from further performance, including payment of the sums due under the Settlement Agreement. The Restrictions on the property title no longer protect any subsisting interests of the defendants and should be removed.

Parties
Claimant: Red River UK Limited; Claimant: Ismail Dogan; Defendant: Anal Sheikh; Defendant: Rabia Sheikh
Jurisdiction
England and Wales
Judgment Date
30 April 2010
Procedural Posture
Civil / Judgment on Liability
Outcome
Judgment for the claimants on liability; defendants found in repudiatory breach; claimants excused from payment obligations under the Settlement Agreement; Restrictions to be removed from title.
Legal Topics
Breach of Contract, Repudiatory Breach, Settlement Agreement, Good Faith, Land Registration, Restrictive Covenants, Remedies, Specific Performance, Damages
Contract Law Property Law Civil Procedure Breach of Contract Repudiatory Breach Settlement Agreement Good Faith Land Registration +4 more

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Parties

Red River UK Limited

Claimant

Ismail Dogan

Claimant

Anal Sheikh

Defendant

Rabia Sheikh

Defendant

Procedural Posture

Civil / Judgment on Liability

Legal Issues

  1. 1 Whether the defendants breached the Settlement Agreement by sabotaging the composite refinancing transaction.
  2. 2 Whether the claimants' obligation to pay £1.2 million under the Settlement Agreement survived the defendants' repudiatory breach.
  3. 3 Whether the Restrictions on the property title should be removed.

Ratio Decidendi

The defendants, by their deliberate actions in presenting a winding up petition and communicating with the Bank of Ireland, sabotaged the composite refinancing transaction contemplated by the Settlement Agreement. This constituted a fundamental and repudiatory breach, entitling the claimants to treat the contract as discharged and excusing them from further performance, including payment of the sums due under the Settlement Agreement. The Restrictions on the property title no longer protect any subsisting interests of the defendants and should be removed.

Court Disposition

Judgment for the claimants on liability; defendants found in repudiatory breach; claimants excused from payment obligations under the Settlement Agreement; Restrictions to be removed from title.

Orders

  • Defendants' rights under the Settlement Agreement are extinguished.
  • Claimants are entitled to damages for breach of contract, subject to proof of causation and loss.