Bilta (UK) Ltd & Ors v SVS Securities plc & Ors [2022] EWHC 723 (Ch) (31 March 2022)

Bilta (UK) Ltd & Ors v SVS Securities plc & Ors [2022] EWHC 723 (Ch) (31 March 2022)

The claims against TFS for dishonest assistance are time-barred because the Claimants, acting by their liquidators, could with reasonable diligence have discovered the facts necessary to plead a viable claim against TFS before receipt of the Karra/Bullen transcript. The liquidators had actual or constructive knowledge of the relevant facts by late 2009, and failed to discharge the burden of proof under section 32 of the Limitation Act 1980. The limitation defence therefore succeeds against all Claimants except Nathanael and Inline, whose position is addressed separately.

Citation
[2022] EWHC 723 (Ch)
Parties
Claimant: Bilta (UK) Limited (in liquidation) and Others; Defendant: SVS Securities plc; Defendant: Kulvir Singh Virk; Defendant: Simon Fox; Defendant: Deutsche Bank AG; Defendant: Tradition Financial Services Limited (TFS)
Jurisdiction
England and Wales
Judgment Date
31 March 2022
Procedural Posture
Civil Commercial/chancery / Judgment After Trial on Limitation and Statutory Construction Issues
Outcome
Claims against TFS for dishonest assistance are dismissed as time-barred under the Limitation Act 1980, except for Nathanael and Inline. The section 213 Insolvency Act 1986 issue is determined separately. Costs to be determined.
Legal Topics
Dishonest Assistance, Fraudulent Trading, Section 213 Insolvency Act 1986, Section 32 Limitation Act 1980, VAT Fraud, MTIC Fraud
Insolvency Commercial Fraud Limitation of Actions Dishonest Assistance Fraudulent Trading Section 213 Insolvency Act 1986 Section 32 Limitation Act 1980 VAT Fraud +1 more

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Parties

Bilta (UK) Limited (in liquidation) and Others

Claimant

SVS Securities plc

Defendant

Kulvir Singh Virk

Defendant

Simon Fox

Defendant

Deutsche Bank AG

Defendant

Tradition Financial Services Limited (TFS)

Defendant

Procedural Posture

Civil Commercial/chancery / Judgment After Trial on Limitation and Statutory Construction Issues

Legal Issues

  1. 1 Whether the claims against TFS for dishonest assistance are time-barred under the Limitation Act 1980
  2. 2 Whether section 32 of the Limitation Act 1980 postpones the limitation period for the claims against TFS
  3. 3 Whether the claims under section 213 of the Insolvency Act 1986 are within the scope of that section

Ratio Decidendi

The claims against TFS for dishonest assistance are time-barred because the Claimants, acting by their liquidators, could with reasonable diligence have discovered the facts necessary to plead a viable claim against TFS before receipt of the Karra/Bullen transcript. The liquidators had actual or constructive knowledge of the relevant facts by late 2009, and failed to discharge the burden of proof under section 32 of the Limitation Act 1980. The limitation defence therefore succeeds against all Claimants except Nathanael and Inline, whose position is addressed separately.

Court Disposition

Claims against TFS for dishonest assistance are dismissed as time-barred under the Limitation Act 1980, except for Nathanael and Inline. The section 213 Insolvency Act 1986 issue is determined separately. Costs to be determined.