Gangat & Anor v Jassat [2021] EWHC 2644 (Ch) (01 October 2021)

Gangat & Anor v Jassat [2021] EWHC 2644 (Ch) (01 October 2021)

The Claimants are entitled to an account and inquiry regarding assets derived from their funds expatriated from South Africa and placed under the Defendant's control. The Defendant breached trust and fiduciary duties by failing to account, misappropriating assets, and transferring assets to the Richmond Trust for his family's benefit without authority. The Claimants' claims are not barred by abuse of process or illegality, as SARS recognised their ownership and they were not parties to the Hathurani proceedings.

Citation
[2021] EWHC 2644 (Ch)
Parties
Claimant: Anwar Gangat; Claimant: Surendra Bhawan; Defendant: Yusuf Jassat
Jurisdiction
England and Wales
Judgment Date
01 October 2021
Procedural Posture
Chancery Division Business List (ch D) / Trial of Liability (split Trial, Liability Only)
Outcome
Claim for account and inquiry granted; Defendant found liable for breach of trust and fiduciary duty.
Legal Topics
Breach of Trust, Breach of Fiduciary Duty, Account and Inquiry, Ownership of Expatriated Funds, Illegality (exchange Control and Tax Evasion), Abuse of Process, Misappropriation of Assets
Trusts Fiduciary Duty Property Law Equity Company Law Breach of Trust Breach of Fiduciary Duty Account and Inquiry +4 more

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Parties

Anwar Gangat

Claimant

Surendra Bhawan

Claimant

Yusuf Jassat

Defendant

Procedural Posture

Chancery Division Business List (ch D) / Trial of Liability (split Trial, Liability Only)

Legal Issues

  1. 1 Whether the Claimants are entitled to an account and inquiry regarding funds expatriated from South Africa and placed under the Defendant's control
  2. 2 Whether the Defendant breached trust and fiduciary duties owed to the Claimants
  3. 3 Ownership of funds in Swiss bank accounts

Ratio Decidendi

The Claimants are entitled to an account and inquiry regarding assets derived from their funds expatriated from South Africa and placed under the Defendant's control. The Defendant breached trust and fiduciary duties by failing to account, misappropriating assets, and transferring assets to the Richmond Trust for his family's benefit without authority. The Claimants' claims are not barred by abuse of process or illegality, as SARS recognised their ownership and they were not parties to the Hathurani proceedings.

Court Disposition

Claim for account and inquiry granted; Defendant found liable for breach of trust and fiduciary duty.

Orders

  • Defendant must provide an account and inquiry regarding assets derived from Claimants' expatriated funds under his control.
  • Defendant liable for equitable compensation for breach of trust and fiduciary duty.