Murphy & Anor v Munir & Ors (Re Muhammed Munir)

Murphy & Anor v Munir & Ors (Re Muhammed Munir)

The court found the 2007, 2008, and 2010 trust deeds to be shams, not intended to have effect, and not evidencing any genuine trust arrangement. Mr Chughtai and Ms Mohammed failed to prove any beneficial interest in Stradbroke Drive by resulting or constructive trust, and the 2008 Deed was not relied upon contemporaneously. The Trustees are entitled to declarations vesting the properties in them. Alternatively, the 2010 Deed is a transaction at an undervalue and/or defrauding creditors and should be set aside.

Parties
Applicant: Kevin Anthony Murphy; Applicant: Adrian Charles Hyde; Respondent: Mohammed Munir; Respondent: Mohammed Hussain; Respondent: Mohammed Shafiq; Respondent: Mohammed Amin; Respondent: Mohammed Salim; Respondent: Razia Munir; Respondent: Ahmed Saeed; Respondent: Babar Amin Chughtai; Claimant: Perveen Mohammed; Defendant: Business Mortgage Finance 7 PLC; Defendant: The Crown Prosecution Service
Jurisdiction
England and Wales
Judgment Date
15 February 2021
Procedural Posture
Insolvency/property/trusts / Final Judgment After Trial
Outcome
Claim dismissed; Insolvency Application granted.
Legal Topics
Sham Trusts, Transactions at Undervalue, Transactions Defrauding Creditors, Constructive Trust, Resulting Trust, Beneficial Ownership, Bankruptcy, Overriding Interests
Insolvency Property Trusts Civil Procedure Sham Trusts Transactions at Undervalue Transactions Defrauding Creditors Constructive Trust +4 more

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Parties

Kevin Anthony Murphy

Applicant

Adrian Charles Hyde

Applicant

Mohammed Munir

Respondent

Mohammed Hussain

Respondent

Mohammed Shafiq

Respondent

Mohammed Amin

Respondent

Mohammed Salim

Respondent

Razia Munir

Respondent

Ahmed Saeed

Respondent

Babar Amin Chughtai

Respondent

Perveen Mohammed

Claimant

Business Mortgage Finance 7 PLC

Defendant

The Crown Prosecution Service

Defendant

Procedural Posture

Insolvency/property/trusts / Final Judgment After Trial

Legal Issues

  1. 1 Whether the 2007, 2008, and 2010 trust deeds are shams
  2. 2 Whether the 2010 Deed is a transaction at an undervalue or defrauding creditors
  3. 3 Whether Mr Chughtai and Ms Mohammed have a beneficial interest in Stradbroke Drive

Ratio Decidendi

The court found the 2007, 2008, and 2010 trust deeds to be shams, not intended to have effect, and not evidencing any genuine trust arrangement. Mr Chughtai and Ms Mohammed failed to prove any beneficial interest in Stradbroke Drive by resulting or constructive trust, and the 2008 Deed was not relied upon contemporaneously. The Trustees are entitled to declarations vesting the properties in them. Alternatively, the 2010 Deed is a transaction at an undervalue and/or defrauding creditors and should be set aside.

Court Disposition

Claim dismissed; Insolvency Application granted.

Orders

  • Declarations that the 2007, 2008, and 2010 Deeds are shams not intended to have effect.
  • Alternatively, the 2010 Deed is a transaction at an undervalue and set aside.