Patel v Iqbal [2020] EWHC 1174 (Ch) (18 May 2020)

Patel v Iqbal [2020] EWHC 1174 (Ch) (18 May 2020)

The Deed creates enforceable trusts over proceeds and company interests for Mr Patel, entitles him to specific performance and delivery of shares, damages for breach, and an account of sums due. The obligations are immediate and enforceable, and the trust extends to proceeds received before and after bankruptcy, subject to a cap of £5 million for Mr Patel's losses.

Citation
[2020] EWHC 1174 (Ch)
Parties
Claimant: Ashank Patel; Defendant: Mohammad Babar Iqbal
Jurisdiction
England and Wales
Judgment Date
18 May 2020
Procedural Posture
Commercial Contract Enforcement / Final Judgment
Outcome
Claim allowed
Legal Topics
Declaration of Trust, Specific Performance, Damages for Breach, Account of Profits, Bankruptcy and Asset Tracing
Trusts Contract Company Law Insolvency Declaration of Trust Specific Performance Damages for Breach Account of Profits +1 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 6 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

Ashank Patel

Claimant

Mohammad Babar Iqbal

Defendant

Procedural Posture

Commercial Contract Enforcement / Final Judgment

Legal Issues

  1. 1 Whether Mr Iqbal holds proceeds and interests on trust for Mr Patel under the Deed
  2. 2 Whether Mr Patel is entitled to specific performance and delivery of shares
  3. 3 Whether Mr Patel is entitled to damages for failure to procure payment

Ratio Decidendi

The Deed creates enforceable trusts over proceeds and company interests for Mr Patel, entitles him to specific performance and delivery of shares, damages for breach, and an account of sums due. The obligations are immediate and enforceable, and the trust extends to proceeds received before and after bankruptcy, subject to a cap of £5 million for Mr Patel's losses.

Court Disposition

Claim allowed

Orders

  • Declaration that Mr Iqbal holds proceeds due to Mr Patel under Clauses 3.1 and 3.2 on trust for Mr Patel, capped at £5 million.
  • Declaration that Mr Iqbal holds his 25% interest in Hope Fostering Services Limited on bare trust for Mr Patel from 15 January 2019.