Serge Belle (formerly known as Serguei Beloussov) & Anor v Ratna Singh & Anor

Serge Belle (formerly known as Serguei Beloussov) & Anor v Ratna Singh & Anor

The Defendants knowingly or recklessly made false representations and breached warranties in the Founders’ Questionnaires and related communications, concealing material facts about the breakdown in relations with existing investors and misuse of company funds. The Claimants relied on these misrepresentations in making their investments and suffered direct and consequential losses. The Defendants are liable in fraudulent misrepresentation and breach of warranty, and the Claimants are entitled to damages assessed as the difference between the warranted and actual value of their shares, plus consequential losses.

Parties
Claimant: Mr. Serg Bell; Claimant: Mr. Ilya Zubarev; Defendant: Ms. Ratna Singh; Defendant: Dr. Oliver Bernath
Jurisdiction
England and Wales
Judgment Date
21 December 2022
Procedural Posture
Commercial / Final Judgment After Trial
Outcome
Judgment for the Claimants
Legal Topics
Fraudulent Misrepresentation, Breach of Warranty, Directors' Duties, Share Subscription Agreements, Damages Assessment
Contract Law Tort Law Company Law Fraudulent Misrepresentation Breach of Warranty Directors' Duties Share Subscription Agreements Damages Assessment

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Parties

Mr. Serg Bell

Claimant

Mr. Ilya Zubarev

Claimant

Ms. Ratna Singh

Defendant

Dr. Oliver Bernath

Defendant

Procedural Posture

Commercial / Final Judgment After Trial

Legal Issues

  1. 1 Whether the Defendants made fraudulent misrepresentations to the Claimants prior to their investment in IHPL.
  2. 2 Whether the Defendants breached warranties in the Subscription Agreement.
  3. 3 Whether the Claimants relied on the misrepresentations and suffered loss as a result.

Ratio Decidendi

The Defendants knowingly or recklessly made false representations and breached warranties in the Founders’ Questionnaires and related communications, concealing material facts about the breakdown in relations with existing investors and misuse of company funds. The Claimants relied on these misrepresentations in making their investments and suffered direct and consequential losses. The Defendants are liable in fraudulent misrepresentation and breach of warranty, and the Claimants are entitled to damages assessed as the difference between the warranted and actual value of their shares, plus consequential losses.

Court Disposition

Judgment for the Claimants

Orders

  • The Defendants shall pay Mr. Bell US$632,001.00 as damages for direct and consequential loss.
  • The Defendants shall pay Mr. Zubarev US$948,000.00 as damages for direct and consequential loss.