Alpha S Communications Ltd v Caz Distribution Services Ltd & Ors

Alpha S Communications Ltd v Caz Distribution Services Ltd & Ors

The court found that the defendants Fern Associates UK Limited, Javeed Akhtar Sakhi, Iftakar Iqbal, Girona Trade Center and Business Affairs SL, and Mark Allen dishonestly assisted the directors of the claimant companies in orchestrating MTIC VAT frauds, and are liable to compensate the claimants for the losses suffered. Claims in dishonest assistance relating to the 2004 transactions are time-barred, but liability attaches under section 213 of the Insolvency Act 1986 for participation in carrying on business with intent to defraud creditors. The court dismissed claims where evidence of dishonest assistance was insufficient or limitation applied.

Parties
Claimant: Alpha Sim Communications Limited; Claimant: U. A. Distribution Limited; Claimant: Revapoint Marketing Limited; Claimant: Kevin John Hellard (as Liquidator of Alpha Sim Communications Limited); Claimant: Kevin John Hellard (as Liquidator of U. A. Distribution Limited); Claimant: Kevin John Hellard (as Liquidator of Revapoint Marketing Limited); Defendant: Caz Distribution Services Limited; Defendant: Iftakar Iqbal; Defendant: Fern Associates UK Limited; Defendant: Amal Munir; Defendant: Javeed Akhtar Sakhi; Defendant: Girona Trade Center and Business Affairs SL; Defendant: Mark Allen
Jurisdiction
England and Wales
Judgment Date
26 February 2014
Procedural Posture
Civil / Judgment
Outcome
Judgment for the claimants in part; claims in dishonest assistance for 2004 transactions dismissed as time-barred; liability established under section 213 of the Insolvency Act 1986 for certain defendants; quantum to be agreed by counsel.
Legal Topics
Dishonest Assistance, Breach of Fiduciary Duty, Conspiracy, Unlawful Trading, VAT Fraud, Limitation of Actions
Insolvency Commercial Law Fraud Dishonest Assistance Breach of Fiduciary Duty Conspiracy Unlawful Trading VAT Fraud +1 more

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 4 Authorities cited 15 Party arguments 2 Amounts and remedies 6
Sign in to unlock

Parties

Alpha Sim Communications Limited

Claimant

U. A. Distribution Limited

Claimant

Revapoint Marketing Limited

Claimant

Kevin John Hellard (as Liquidator of Alpha Sim Communications Limited)

Claimant

Kevin John Hellard (as Liquidator of U. A. Distribution Limited)

Claimant

Kevin John Hellard (as Liquidator of Revapoint Marketing Limited)

Claimant

Caz Distribution Services Limited

Defendant

Iftakar Iqbal

Defendant

Fern Associates UK Limited

Defendant

Amal Munir

Defendant

Javeed Akhtar Sakhi

Defendant

Girona Trade Center and Business Affairs SL

Defendant

Mark Allen

Defendant

Procedural Posture

Civil / Judgment

Legal Issues

  1. 1 Whether the defendants dishonestly assisted breaches of fiduciary duty by directors of the claimant companies in orchestrating MTIC VAT fraud schemes
  2. 2 Whether the defendants participated in carrying on business with intent to defraud creditors or for a fraudulent purpose under section 213 of the Insolvency Act 1986
  3. 3 Whether the claims are time-barred by limitation statutes

Ratio Decidendi

The court found that the defendants Fern Associates UK Limited, Javeed Akhtar Sakhi, Iftakar Iqbal, Girona Trade Center and Business Affairs SL, and Mark Allen dishonestly assisted the directors of the claimant companies in orchestrating MTIC VAT frauds, and are liable to compensate the claimants for the losses suffered. Claims in dishonest assistance relating to the 2004 transactions are time-barred, but liability attaches under section 213 of the Insolvency Act 1986 for participation in carrying on business with intent to defraud creditors. The court dismissed claims where evidence of dishonest assistance was insufficient or limitation applied.

Court Disposition

Judgment for the claimants in part; claims in dishonest assistance for 2004 transactions dismissed as time-barred; liability established under section 213 of the Insolvency Act 1986 for certain defendants; quantum to be agreed by counsel.

Orders

  • Defendants Fern Associates UK Limited, Javeed Akhtar Sakhi, Iftakar Iqbal, Girona Trade Center and Business Affairs SL, and Mark Allen to compensate Alpha Sim Communications Limited, U. A. Distribution Limited, and Revapoint Marketing Limited (through their liquidators) for losses as determined.
  • Claims in dishonest assistance for 2004 transactions dismissed as time-barred.