The Secretary of State for Business and Trade v Daniel Singh Sekhon

The Secretary of State for Business and Trade v Daniel Singh Sekhon

Mr Sekhon, as sole director, caused Combat Construction Limited to trade to the detriment of HMRC by maintaining payments to other creditors while failing to account for and pay CIS tax liabilities, evidencing a discriminatory policy. His defence regarding GPS status and inability to access the CIS portal was rejected on the facts. This conduct fell below the standards of probity and competence required of company directors, justifying disqualification under section 6 of the Company Directors Disqualification Act 1986.

Parties
Claimant: The Secretary of State for Business and Trade; Defendant: Daniel Singh Sekhon
Jurisdiction
England and Wales
Judgment Date
25 November 2024
Procedural Posture
Company Directors Disqualification / Final Judgment
Outcome
disqualification order granted
Legal Topics
Directors' Duties, Disqualification, Insolvent Trading, Discriminatory Payment Policy, Tax Liabilities
Company Law Insolvency Law Directors' Duties Disqualification Insolvent Trading Discriminatory Payment Policy Tax Liabilities

Case Brief

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Parties

The Secretary of State for Business and Trade

Claimant

Daniel Singh Sekhon

Defendant

Procedural Posture

Company Directors Disqualification / Final Judgment

Legal Issues

  1. 1 Whether Mr Sekhon's conduct as director of Combat Construction Limited constituted unfit conduct under the Company Directors Disqualification Act 1986
  2. 2 Whether a discriminatory practice of paying other creditors to the detriment of HMRC was established
  3. 3 Whether the evidential burden shifted to Mr Sekhon and if his defence was credible

Ratio Decidendi

Mr Sekhon, as sole director, caused Combat Construction Limited to trade to the detriment of HMRC by maintaining payments to other creditors while failing to account for and pay CIS tax liabilities, evidencing a discriminatory policy. His defence regarding GPS status and inability to access the CIS portal was rejected on the facts. This conduct fell below the standards of probity and competence required of company directors, justifying disqualification under section 6 of the Company Directors Disqualification Act 1986.

Court Disposition

disqualification order granted

Orders

  • Mr Sekhon is disqualified from acting as a director for 4 years under section 6 of the Company Directors Disqualification Act 1986