Clydesdale Bank Plc v Stoke Place Hotel Ltd & Ors

Clydesdale Bank Plc v Stoke Place Hotel Ltd & Ors

Mr Dhillon is liable to the Bank for the sums guaranteed under the 2005 and 2006 guarantees, is responsible as joint tortfeasor for the deceit perpetrated in the Stoke Place transaction, and is liable for damages for conspiracy to injure the Bank by unlawful means in relation to unauthorised facilities advanced after 30 June 2010.

Parties
Claimant: Clydesdale Bank plc; Defendant: Stoke Place Hotel Ltd (in administration); Defendant: Novtej Singh Dhillon; Defendant: Sarina Thiara Dhillon; Defendant: Andrew Paul Seavers
Jurisdiction
England and Wales
Judgment Date
07 February 2017
Procedural Posture
Civil / Judgment After Trial
Outcome
Judgment for the Claimant
Legal Topics
Guarantees, Fraud, Conspiracy, Unlawful Means, Knowing Receipt, Unjust Enrichment
Banking Law Commercial Law Tort Law Guarantees Fraud Conspiracy Unlawful Means Knowing Receipt +1 more

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Parties

Clydesdale Bank plc

Claimant

Stoke Place Hotel Ltd (in administration)

Defendant

Novtej Singh Dhillon

Defendant

Sarina Thiara Dhillon

Defendant

Andrew Paul Seavers

Defendant

Procedural Posture

Civil / Judgment After Trial

Legal Issues

  1. 1 Are the guarantees executed by Mr Dhillon enforceable?
  2. 2 Did Mr Dhillon participate in a fraudulent misrepresentation regarding the Stoke Place transaction?
  3. 3 Is Mr Dhillon liable for conspiracy to injure the Bank by unlawful means in relation to unauthorised facilities?

Ratio Decidendi

Mr Dhillon is liable to the Bank for the sums guaranteed under the 2005 and 2006 guarantees, is responsible as joint tortfeasor for the deceit perpetrated in the Stoke Place transaction, and is liable for damages for conspiracy to injure the Bank by unlawful means in relation to unauthorised facilities advanced after 30 June 2010.

Court Disposition

Judgment for the Claimant

Orders

  • Judgment against Mr Dhillon for £250,000 and £850,000 under the guarantees, with interest at 3.75% above base rate, compounded monthly from 19 September 2012 to judgment.
  • Declaration that Mr Dhillon is responsible as joint tortfeasor for deceit in the Stoke Place transaction, quantum of loss reserved.