Murphy & Anor v Munir & Ors (Re Muhammed Munir) [2021] EWHC 278 (Ch) (15 February 2021)

Murphy & Anor v Munir & Ors (Re Muhammed Munir) [2021] EWHC 278 (Ch) (15 February 2021)

The court finds the 2007, 2008, and 2010 trust deeds are shams, executed with the intention to defeat creditors and not to create genuine legal rights. The evidence does not support Mr Chughtai's claim to beneficial ownership of Stradbroke Drive; his evidence is unreliable and unsupported by contemporaneous...

Source-derived case information.

Citation
[2021] EWHC 278 (Ch)
Parties
Applicant/third Defendant: Kevin Anthony Murphy; Applicant/fourth Defendant: Adrian Charles Hyde; Respondent/first Defendant: Mohammed Munir; Respondent: Mohammed Hussain; Respondent: Mohammed Shafiq; Respondent: Mohammed Amin; Respondent: Mohammed Salim; Respondent/second Defendant: Razia Munir; Respondent: Ahmed Saeed; Respondent/claimant: Babar Amin Chughtai; Claimant: Perveen Mohammed; Fifth Defendant: Business Mortgage Finance 7 PLC; Sixth Defendant: Crown Prosecution Service
Jurisdiction
England and Wales
Judgment Date
15 February 2021
Procedural Posture
Insolvency/property Trusts / Post Trial Judgment
Outcome
Application granted in full except as compromised regarding Parkview.
Legal Topics
Sham Trusts, Constructive Trusts, Resulting Trusts, Transactions at Undervalue, Transactions Defrauding Creditors, Overriding Interests
Insolvency Property Law Trusts Fraud Sham Trusts Constructive Trusts Resulting Trusts Transactions at Undervalue +2 more

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Parties

Kevin Anthony Murphy

Applicant/third Defendant

Adrian Charles Hyde

Applicant/fourth Defendant

Mohammed Munir

Respondent/first Defendant

Mohammed Hussain

Respondent

Mohammed Shafiq

Respondent

Mohammed Amin

Respondent

Mohammed Salim

Respondent

Razia Munir

Respondent/second Defendant

Ahmed Saeed

Respondent

Babar Amin Chughtai

Respondent/claimant

Perveen Mohammed

Claimant

Business Mortgage Finance 7 PLC

Fifth Defendant

Crown Prosecution Service

Sixth Defendant

Procedural Posture

Insolvency/property Trusts / Post Trial Judgment

Legal Issues

  1. 1 Whether the 2007, 2008, and 2010 trust deeds are shams
  2. 2 Whether any transfer of beneficial interest was a transaction at an undervalue or defrauding creditors
  3. 3 Whether Stradbroke Drive is held on trust for Mr Chughtai

Ratio Decidendi

The court finds the 2007, 2008, and 2010 trust deeds are shams, executed with the intention to defeat creditors and not to create genuine legal rights. The evidence does not support Mr Chughtai's claim to beneficial ownership of Stradbroke Drive; his evidence is unreliable and unsupported by contemporaneous documentation. The properties vest in the trustees under section 306 of the Insolvency Act 1986. No overriding interest binds BMF. Mrs Munir's claim to Parkview is compromised and dismissed by consent.

Court Disposition

Application granted in full except as compromised regarding Parkview.

Orders

  • Declarations that the 2007, 2008, and 2010 trust deeds are shams and void.
  • Properties (including Stradbroke Drive) vest in the trustees under Insolvency Act 1986 s.306.