SHARMA & ORS v MUNDATH & ORS [2018] NZHC 675

SHARMA & ORS v MUNDATH & ORS [2018] NZHC 675

Because the plaintiffs demonstrated a good arguable case of widespread fraud, produced evidence of overseas transfers and risk of dissipation, and provided undertakings as to damages, the Court granted worldwide freezing orders and ancillary disclosure orders limited in duration and subject to carve-outs for ordinary living, legal and business expenses; JP Morgan Chase was excluded for lack of evidence.

Citation
[2018] NZHC 675
Parties
First Plaintiff: DATA RAM SHARMA AND GANESH DIXIT; Second Plaintiff: BIKANER FOODS MT ROSKILL LIMITED; Third Plaintiff: JAYA INVESTMENTS LIMITED; Fourth Plaintiff: WIANZ SERVICES LIMITED; Fifth Plaintiff: TRAVELLERS INN LIMITED; Sixth Plaintiff: V AND A LIMITED; Seventh Plaintiff: VR ROTORUA LIMITED; Eighth Plaintiff: V AND A 2012 LIMITED; Ninth Plaintiff: VINDOD KUMAR SHARMA; Tenth Plaintiff: BIKANER FOODS 2010 NZ LIMITED; Eleventh Plaintiff: BIKANER FOODS NZ LIMITED; Twelfth Plaintiff: CAMELOT HOTEL LIMITED; Thirteenth Plaintiff: GATEWAY MOTEL LIMITED; Fourteenth Plaintiff: M AND RA LIMITED; Fifteenth Plaintiff: RAKESH KUMAR SHARMA AND MADHU SHARMA; Sixteenth Plaintiff: RAKESH KUMAR SHARMA AND MADHU SHARMA; Seventeenth Plaintiff: RAKESH KUMAR SHARMA AND ROGER CHI; Eighteenth Plaintiff: SMARTBUY SOLUTIONS LIMITED; Nineteenth Plaintiff: TRAVELLERS INN RECEIVERSHIP LIMITED; Twentieth Plaintiff: VR GROUP LIMITED; Twenty First Plaintiff: VR HAMILTON BACKPACKERS LIMITED; Twenty Second Plaintiff: VR HAMILTON LIMITED; Twenty Third Plaintiff: RAKESH KUMAR SHARMA; Twenty Fourth Plaintiff: ASHOK KUMAR SHARMA AND SUDHA SHARMA; Twenty Fifth Plaintiff: ANKUR ENTERPRISES LIMITED; Twenty Sixth Plaintiff: BIKANER FOODS METRO LIMITED; Twenty Seventh Plaintiff: NINETY FIVE NZ LIMITED; Twenty Eighth Plaintiff: AMAZON NZ LIMITED; Twenty Ninth Plaintiff: M & A LIMITED; Thirtieth Plaintiff: TE ATATU DEVELOPMENTS LIMITED; Thirty First Plaintiff: ANKUR INVESTMENTS LIMITED; First Defendant: MUJEEB RAHIMAN MUNDATH; Second Defendant: MOHAMMED HAFIZ; Third Defendant: M H TRADING & CONSULTING LIMITED
Court
High Court
Jurisdiction
New Zealand
Judgment Date
13 April 2018
Procedural Posture
Interlocutory Application for Freezing Orders and Ancillary Disclosure (without Notice) / Interim / Interlocutory Orders Granted Without Notice; Returnable by 11 May 2018
Outcome
Application granted in part: extended freezing orders and ancillary disclosure orders made against first to third defendants and relevant third parties; orders limited to expire at 5.00 pm on 11 May 2018; JP Morgan Chase excluded.
Legal Topics
Freezing Order, Ancillary Disclosure, Without Notice Orders, Asset Preservation, Mareva Type Injunction, Undertaking as to Damages
Civil Equity Injunctions Banking Law Fraud Procedural Law Freezing Order Ancillary Disclosure +4 more

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Parties

DATA RAM SHARMA AND GANESH DIXIT

First Plaintiff

BIKANER FOODS MT ROSKILL LIMITED

Second Plaintiff

JAYA INVESTMENTS LIMITED

Third Plaintiff

WIANZ SERVICES LIMITED

Fourth Plaintiff

TRAVELLERS INN LIMITED

Fifth Plaintiff

V AND A LIMITED

Sixth Plaintiff

VR ROTORUA LIMITED

Seventh Plaintiff

V AND A 2012 LIMITED

Eighth Plaintiff

VINDOD KUMAR SHARMA

Ninth Plaintiff

BIKANER FOODS 2010 NZ LIMITED

Tenth Plaintiff

BIKANER FOODS NZ LIMITED

Eleventh Plaintiff

CAMELOT HOTEL LIMITED

Twelfth Plaintiff

GATEWAY MOTEL LIMITED

Thirteenth Plaintiff

M AND RA LIMITED

Fourteenth Plaintiff

RAKESH KUMAR SHARMA AND MADHU SHARMA

Fifteenth Plaintiff

RAKESH KUMAR SHARMA AND MADHU SHARMA

Sixteenth Plaintiff

RAKESH KUMAR SHARMA AND ROGER CHI

Seventeenth Plaintiff

SMARTBUY SOLUTIONS LIMITED

Eighteenth Plaintiff

TRAVELLERS INN RECEIVERSHIP LIMITED

Nineteenth Plaintiff

VR GROUP LIMITED

Twentieth Plaintiff

VR HAMILTON BACKPACKERS LIMITED

Twenty First Plaintiff

VR HAMILTON LIMITED

Twenty Second Plaintiff

RAKESH KUMAR SHARMA

Twenty Third Plaintiff

ASHOK KUMAR SHARMA AND SUDHA SHARMA

Twenty Fourth Plaintiff

ANKUR ENTERPRISES LIMITED

Twenty Fifth Plaintiff

BIKANER FOODS METRO LIMITED

Twenty Sixth Plaintiff

NINETY FIVE NZ LIMITED

Twenty Seventh Plaintiff

AMAZON NZ LIMITED

Twenty Eighth Plaintiff

M & A LIMITED

Twenty Ninth Plaintiff

TE ATATU DEVELOPMENTS LIMITED

Thirtieth Plaintiff

ANKUR INVESTMENTS LIMITED

Thirty First Plaintiff

MUJEEB RAHIMAN MUNDATH

First Defendant

MOHAMMED HAFIZ

Second Defendant

M H TRADING & CONSULTING LIMITED

Third Defendant

Procedural Posture

Interlocutory Application for Freezing Orders and Ancillary Disclosure (without Notice) / Interim / Interlocutory Orders Granted Without Notice; Returnable by 11 May 2018

Legal Issues

  1. 1 Whether the plaintiffs established a good arguable case of widespread and systematic fraud by the first defendant
  2. 2 Whether there were reasonable grounds to believe the defendants would dissipate assets or transfer funds overseas
  3. 3 Whether ancillary disclosure orders against banks and transfer agencies were necessary and proportionate

Ratio Decidendi

Because the plaintiffs demonstrated a good arguable case of widespread fraud, produced evidence of overseas transfers and risk of dissipation, and provided undertakings as to damages, the Court granted worldwide freezing orders and ancillary disclosure orders limited in duration and subject to carve-outs for ordinary living, legal and business expenses; JP Morgan Chase was excluded for lack of evidence.

Court Disposition

Application granted in part: extended freezing orders and ancillary disclosure orders made against first to third defendants and relevant third parties; orders limited to expire at 5.00 pm on 11 May 2018; JP Morgan Chase excluded.

Orders

  • Worldwide freezing order restraining first to third defendants from removing, disposing of or dealing with assets specified (including property at 14A Jasper Avenue and multiple bank accounts)
  • Freezing order restraining specified account holders and bank account numbers from dealing with those accounts