Deluxe Property Holdings Ltd v SCL Construction Ltd & Anor (Interim Relief)

Deluxe Property Holdings Ltd v SCL Construction Ltd & Anor (Interim Relief)

There is a serious issue to be tried as to Deluxe’s proprietary entitlement to the section 80 VAT claim and any proceeds, supported by contractual undertakings and the statutory scheme. Damages may not be an adequate remedy given SCL’s financial position. The balance of convenience and justice favour granting interim proprietary relief to preserve the asset and require disclosure.

Parties
Claimant: Deluxe Property Holdings Limited; First Defendant: SCL Construction Limited; Second Defendant: HMRC
Jurisdiction
England and Wales
Judgment Date
07 October 2020
Procedural Posture
Civil / Interim Application for Injunction
Outcome
interim proprietary injunction granted
Legal Topics
Constructive Trust, Quistclose Trust, VAT Repayment, Proprietary Injunction, Interim Relief
Trusts Contract Unjust Enrichment Constructive Trust Quistclose Trust VAT Repayment Proprietary Injunction Interim Relief

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Parties

Deluxe Property Holdings Limited

Claimant

SCL Construction Limited

First Defendant

HMRC

Second Defendant

Procedural Posture

Civil / Interim Application for Injunction

Legal Issues

  1. 1 Whether SCL holds the section 80 VAT claim and any proceeds on trust for Deluxe
  2. 2 Whether Deluxe is entitled to a proprietary injunction to preserve the VAT repayment proceeds
  3. 3 Whether damages are an adequate remedy for Deluxe

Ratio Decidendi

There is a serious issue to be tried as to Deluxe’s proprietary entitlement to the section 80 VAT claim and any proceeds, supported by contractual undertakings and the statutory scheme. Damages may not be an adequate remedy given SCL’s financial position. The balance of convenience and justice favour granting interim proprietary relief to preserve the asset and require disclosure.

Court Disposition

interim proprietary injunction granted

Orders

  • SCL to pay any monies received from HMRC in respect of the section 80 VAT claim to Deluxe’s solicitors or into court, to be held in a separate account pending further order
  • SCL to provide information regarding monies received, tax credits applied for, and payments made in respect of the VAT claim by 5pm on the Friday following service of the order