QEB Metallics Ltd v Peerzada & Ors

QEB Metallics Ltd v Peerzada & Ors

Nouman Hafiz was found to be the controlling mind and de facto director of QEB Metallics Ltd, orchestrating a scheme to defraud HMRC of VAT. He owed fiduciary duties and was liable under ss 212-213 Insolvency Act 1986 for the full VAT loss. Aslam Peerzada, as director, was also liable for a portion of the loss. The civil standard of proof applied.

Parties
Claimant: QEB Metallics Limited (by its Joint Liquidators, David Ingram and Kevin Murphy); Defendant: Aslam Peerzada; Defendant: Adnan Mohammad Khan (also known as Eddy Khan); Defendant: Nouman Hafiz
Jurisdiction
England and Wales
Judgment Date
22 December 2009
Procedural Posture
Civil / Judgment
Outcome
judgment for claimant
Legal Topics
Director Liability, Shadow Director, VAT Fraud, Fiduciary Duties, Misfeasance, Fraudulent Trading, Conspiracy
Insolvency Company Law Fraud Director Liability Shadow Director VAT Fraud Fiduciary Duties Misfeasance +2 more

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Parties

QEB Metallics Limited (by its Joint Liquidators, David Ingram and Kevin Murphy)

Claimant

Aslam Peerzada

Defendant

Adnan Mohammad Khan (also known as Eddy Khan)

Defendant

Nouman Hafiz

Defendant

Procedural Posture

Civil / Judgment

Legal Issues

  1. 1 Whether the defendants were liable for VAT fraud perpetrated through QEB Metallics Ltd
  2. 2 Whether Nouman Hafiz was a de facto or shadow director and owed fiduciary duties
  3. 3 Whether the defendants were guilty of misfeasance, breach of duty, or conspiracy to defraud HMRC

Ratio Decidendi

Nouman Hafiz was found to be the controlling mind and de facto director of QEB Metallics Ltd, orchestrating a scheme to defraud HMRC of VAT. He owed fiduciary duties and was liable under ss 212-213 Insolvency Act 1986 for the full VAT loss. Aslam Peerzada, as director, was also liable for a portion of the loss. The civil standard of proof applied.

Court Disposition

judgment for claimant

Orders

  • Judgment against Aslam Peerzada for £988,357.08 plus simple interest at the rate applicable to late payment of VAT from the dates VAT should have been accounted for to judgment.
  • Judgment against Nouman Hafiz for £2,141,510.80 plus simple interest at the rate applicable to late payment of VAT from the dates VAT should have been accounted for to judgment.