Ready Rentals Ltd v Ahmed & Anor [2016] EWHC 1996 (Ch) (29 July 2016)

Ready Rentals Ltd v Ahmed & Anor [2016] EWHC 1996 (Ch) (29 July 2016)

A restraint order should be made against Mr Ahmed covering his interest in the money in court, as the statutory criteria under POCA are met and delay does not bar the order. Ready Rentals has an equitable security interest in the fund to the extent of £11,898.50 (costs ordered to be paid forthwith), which must be paid out to its solicitors notwithstanding the restraint order. The remainder of the fund is subject to the restraint order. The agreed order for equal division of the fund between Ready Rentals and Mr Ahmed cannot be made. Mr Ahmed's possible lack of capacity does not prevent these orders, but payment out is delayed to allow for any application for a litigation friend.

Citation
[2016] EWHC 1996 (Ch)
Parties
Claimant: Ready Rentals Limited (in liquidation); First Defendant/respondent: Kaamran Ahmed; Second Defendant: Aref Zakari; Applicant: Crown Prosecution Service
Jurisdiction
England and Wales
Judgment Date
29 July 2016
Procedural Posture
Civil and Criminal (restraint Order Application) / Post Judgment, Application for Restraint Order and Payment Out of Funds
Outcome
Restraint order granted against Mr Ahmed; partial payment out to Ready Rentals ordered; agreed division of fund refused.
Legal Topics
Restraint Orders, Proceeds of Crime, Freezing Orders, Equitable Interests, Costs in Litigation, Liquidation, Capacity of Parties
Criminal Law Civil Procedure Insolvency Law Restraint Orders Proceeds of Crime Freezing Orders Equitable Interests Costs in Litigation +2 more

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Parties

Ready Rentals Limited (in liquidation)

Claimant

Kaamran Ahmed

First Defendant/respondent

Aref Zakari

Second Defendant

Crown Prosecution Service

Applicant

Procedural Posture

Civil and Criminal (restraint Order Application) / Post Judgment, Application for Restraint Order and Payment Out of Funds

Legal Issues

  1. 1 Whether a restraint order should be made against Mr Ahmed under POCA covering funds paid into court
  2. 2 Whether delay by the Crown bars the making of a restraint order
  3. 3 Whether Ready Rentals has an 'interest' in the money in court within the meaning of POCA s.69(3)(a)

Ratio Decidendi

A restraint order should be made against Mr Ahmed covering his interest in the money in court, as the statutory criteria under POCA are met and delay does not bar the order. Ready Rentals has an equitable security interest in the fund to the extent of £11,898.50 (costs ordered to be paid forthwith), which must be paid out to its solicitors notwithstanding the restraint order. The remainder of the fund is subject to the restraint order. The agreed order for equal division of the fund between Ready Rentals and Mr Ahmed cannot be made. Mr Ahmed's possible lack of capacity does not prevent these orders, but payment out is delayed to allow for any application for a litigation friend.

Court Disposition

Restraint order granted against Mr Ahmed; partial payment out to Ready Rentals ordered; agreed division of fund refused.

Orders

  • A restraint order is made against Mr Ahmed extending to his interest in the money in court.
  • £11,898.50 to be paid out to Ready Rentals' solicitors, but not to take effect until 1 September 2016.