Brewer & Anor v Iqbal

Brewer & Anor v Iqbal

Mr Iqbal breached his duty of care and fiduciary duty by failing to obtain a proper valuation of the EPGs, relying excessively on the directors, inadequately marketing the assets, and prioritising the interests of the associated purchaser over those of the company and its creditors. These failures resulted in the sale of the assets at a significant undervalue, causing loss to the company. Equitable compensation is awarded based on the objective value of the assets lost, discounted for the circumstances of the sale.

Parties
Applicant: Richard Brewer; Applicant: Mark Wilson; Company in Liquidation: ARY Digital UK Limited; Respondent: Zafar Iqbal
Jurisdiction
England and Wales
Judgment Date
11 February 2019
Procedural Posture
Civil Insolvency / Judgment After Trial
Outcome
Claim allowed. Judgment for the joint liquidators.
Legal Topics
Administrator's Duties, Breach of Fiduciary Duty, Professional Negligence, Valuation of Assets, Sale of Company Assets, Equitable Compensation
Insolvency Company Law Equity Administrator's Duties Breach of Fiduciary Duty Professional Negligence Valuation of Assets Sale of Company Assets +1 more

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Parties

Richard Brewer

Applicant

Mark Wilson

Applicant

ARY Digital UK Limited

Company in Liquidation

Zafar Iqbal

Respondent

Procedural Posture

Civil Insolvency / Judgment After Trial

Legal Issues

  1. 1 Whether Mr Iqbal, as administrator, breached his duty of care and fiduciary duty in the sale of ARY Digital UK Limited's assets, particularly the EPGs, to an associated company at an undervalue.
  2. 2 Whether the administrator failed to obtain a proper valuation and adequately market the assets, thereby causing loss to the company and its creditors.

Ratio Decidendi

Mr Iqbal breached his duty of care and fiduciary duty by failing to obtain a proper valuation of the EPGs, relying excessively on the directors, inadequately marketing the assets, and prioritising the interests of the associated purchaser over those of the company and its creditors. These failures resulted in the sale of the assets at a significant undervalue, causing loss to the company. Equitable compensation is awarded based on the objective value of the assets lost, discounted for the circumstances of the sale.

Court Disposition

Claim allowed. Judgment for the joint liquidators.

Orders

  • Mr Iqbal to pay equitable compensation of £743,750 for breach of fiduciary duty.