YS GM Marfin II LLC & Ors v Lakhani & Ors

YS GM Marfin II LLC & Ors v Lakhani & Ors

The Defendants have no real prospect of successfully defending the claim under the guarantees on grounds of undue influence, as there is no evidence of abuse of influence or unconscionable conduct by Tahir Lakhani. The transaction was commercial, the guarantees were routine for beneficial owners and directors, and the Claimants were not put on inquiry. There was no material non-disclosure justifying discharge of the worldwide freezing order, and the notifications to third parties, while requiring clarification, did not amount to an abuse of process warranting discharge of the order.

Parties
Claimant: YS GM Marfin II LLC; Claimant: YS GM MF VIII LLC; Claimant: YS GM MF VII LLC; Claimant: YS GM MF IX LLC; Claimant: YS GM MF X LLC; Defendant: Muhammad Ali Lakhani; Defendant: Muhammad Hasan Lakhani; Defendant: Muhammad Tahir Lakhani
Jurisdiction
England and Wales
Judgment Date
05 October 2020
Procedural Posture
Commercial Court Summary Judgment and Freezing Order Applications / Judgment on Summary Judgment Application and Application to Discharge Worldwide Freezing Order
Outcome
Summary judgment granted for the Claimants; worldwide freezing order continued with directions for corrective notification to third parties.
Legal Topics
Summary Judgment, Personal Guarantees, Undue Influence, Worldwide Freezing Orders, Non Disclosure, Abuse of Process
Commercial Law Banking and Finance Law Equity Summary Judgment Personal Guarantees Undue Influence Worldwide Freezing Orders Non Disclosure +1 more

Case Brief

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Parties

YS GM Marfin II LLC

Claimant

YS GM MF VIII LLC

Claimant

YS GM MF VII LLC

Claimant

YS GM MF IX LLC

Claimant

YS GM MF X LLC

Claimant

Muhammad Ali Lakhani

Defendant

Muhammad Hasan Lakhani

Defendant

Muhammad Tahir Lakhani

Defendant

Procedural Posture

Commercial Court Summary Judgment and Freezing Order Applications / Judgment on Summary Judgment Application and Application to Discharge Worldwide Freezing Order

Legal Issues

  1. 1 Whether the Defendants have a real prospect of successfully defending the claim under the guarantees on grounds of undue influence
  2. 2 Whether the Claimants failed to disclose material facts justifying discharge of the worldwide freezing order
  3. 3 Whether the Claimants' notifications to third parties constituted an abuse of process

Ratio Decidendi

The Defendants have no real prospect of successfully defending the claim under the guarantees on grounds of undue influence, as there is no evidence of abuse of influence or unconscionable conduct by Tahir Lakhani. The transaction was commercial, the guarantees were routine for beneficial owners and directors, and the Claimants were not put on inquiry. There was no material non-disclosure justifying discharge of the worldwide freezing order, and the notifications to third parties, while requiring clarification, did not amount to an abuse of process warranting discharge of the order.

Court Disposition

Summary judgment granted for the Claimants; worldwide freezing order continued with directions for corrective notification to third parties.

Orders

  • Summary judgment entered against Muhammad Ali Lakhani and Muhammad Hasan Lakhani for US$76,700,093.70 under the guarantees.
  • Worldwide freezing order continued against all Defendants.