Clydesdale Bank Plc v Stoke Place Hotel Ltd & Ors [2017] EWHC 181 (Ch) (07 February 2017)

Clydesdale Bank Plc v Stoke Place Hotel Ltd & Ors [2017] EWHC 181 (Ch) (07 February 2017)

Mr Dhillon is liable under both personal guarantees as there was no binding release. He is liable in deceit and conspiracy regarding the Stoke Place transaction, having been complicit in fraudulent misrepresentations to the Bank. He is also liable for conspiracy to injure by unlawful means in relation to the...

Source-derived case information.

Citation
[2017] EWHC 181 (Ch)
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
Commercial/banking Claim / High Court Trial Judgment
Outcome
Judgment for the Claimant against Mr Dhillon.
Legal Topics
Personal Guarantees, Fraudulent Misrepresentation, Conspiracy to Injure by Unlawful Means, Knowing Receipt, Unjust Enrichment, Insolvency Proceedings
Banking and Finance Commercial Law Fraud Insolvency Personal Guarantees Fraudulent Misrepresentation Conspiracy to Injure by Unlawful Means Knowing Receipt +2 more

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Summary, issues, holding and outcome

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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

Commercial/banking Claim / High Court Trial Judgment

Legal Issues

  1. 1 Whether Mr Dhillon is liable under two personal guarantees for £250,000 and £850,000 respectively
  2. 2 Whether Mr Dhillon is liable in deceit or conspiracy regarding the Stoke Place transaction
  3. 3 Whether Mr Dhillon is liable for unauthorised facilities advanced by Mr Seavers on grounds of conspiracy, knowing receipt, or unjust enrichment

Ratio Decidendi

Mr Dhillon is liable under both personal guarantees as there was no binding release. He is liable in deceit and conspiracy regarding the Stoke Place transaction, having been complicit in fraudulent misrepresentations to the Bank. He is also liable for conspiracy to injure by unlawful means in relation to the unauthorised facilities, having knowingly participated in the provision and concealment of unauthorised lending, and is alternatively liable for knowing receipt and unjust enrichment.

Court Disposition

Judgment for the Claimant against Mr Dhillon.

Orders

  • Mr Dhillon to pay £250,000 plus interest and costs under the 2005 Guarantee.
  • Mr Dhillon to pay £850,000 plus interest and costs under the 2006 Guarantee (jointly and severally with Mrs Dhillon, but only Mr Dhillon pursued).