Lime and Black BPS Limited (in liquidation) v Dharminder Singh Gill & Ors

Lime and Black BPS Limited (in liquidation) v Dharminder Singh Gill & Ors

Mr Mistry was a de facto director of the Company, owed statutory fiduciary duties, and breached them by participating in and authorising payments as part of a VAT fraud. He processed and authorised payments from the Company's IFX and Payfect accounts, was involved in the Company's conception, and administered its pension scheme. Payments to him were not for genuine services. The Company is entitled to equitable compensation for losses caused by his breaches, being the total of payments made to him and to other defendants from the IFX and Payfect accounts, but not payments from the HSBC account.

Parties
Claimant: Lime and Black BPS Limited (in liquidation); Defendant: Dharminder Singh Gill; Defendant: Kiran Kumar Mistry; Defendant: Oberon 11 Limited; Defendant: Lime & Black Corp Limited; Defendant: Squared Circle Limited
Jurisdiction
England and Wales
Judgment Date
24 July 2024
Procedural Posture
Civil (company/commercial) / Judgment After Trial
Outcome
Judgment for the Claimant against Mr Mistry for equitable compensation for breach of fiduciary duty.
Legal Topics
De Facto Directorship, Breach of Fiduciary Duty, VAT Fraud, Equitable Compensation, Dishonest Assistance, Knowing Receipt
Company Law Insolvency Commercial Fraud De Facto Directorship Breach of Fiduciary Duty VAT Fraud Equitable Compensation Dishonest Assistance +1 more

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Parties

Lime and Black BPS Limited (in liquidation)

Claimant

Dharminder Singh Gill

Defendant

Kiran Kumar Mistry

Defendant

Oberon 11 Limited

Defendant

Lime & Black Corp Limited

Defendant

Squared Circle Limited

Defendant

Procedural Posture

Civil (company/commercial) / Judgment After Trial

Legal Issues

  1. 1 Whether Mr Mistry was a de facto director of the Company
  2. 2 Whether Mr Mistry breached fiduciary duties owed to the Company
  3. 3 Whether Mr Mistry dishonestly assisted or knowingly received Company funds

Ratio Decidendi

Mr Mistry was a de facto director of the Company, owed statutory fiduciary duties, and breached them by participating in and authorising payments as part of a VAT fraud. He processed and authorised payments from the Company's IFX and Payfect accounts, was involved in the Company's conception, and administered its pension scheme. Payments to him were not for genuine services. The Company is entitled to equitable compensation for losses caused by his breaches, being the total of payments made to him and to other defendants from the IFX and Payfect accounts, but not payments from the HSBC account.

Court Disposition

Judgment for the Claimant against Mr Mistry for equitable compensation for breach of fiduciary duty.

Orders

  • Mr Mistry to pay equitable compensation to the Company in the sum of payments made to him and to other defendants from the IFX and Payfect accounts, as set out in the judgment.