IFTIKHAR, RECLAIMING MOTION AGAINST CIP PROPERTY (AIPT) LIMITED [2018] ScotCS CSIH_44 (03 July 2018)

IFTIKHAR, RECLAIMING MOTION AGAINST CIP PROPERTY (AIPT) LIMITED [2018] ScotCS CSIH_44 (03 July 2018)

The pursuer complied with the defenders' initial KYC information request by the stipulated deadline. The defenders' subsequent request for further information was legitimate, but they did not make time of the essence or provide an ultimatum. The defenders' sudden rescission was unlawful. The Money Laundering Regulations 2007 did not render performance of the contract illegal, as the defenders were able to carry out customer due diligence and rely on the pursuer's solicitor's certification. The pursuer is entitled to declarator that the defenders remain bound by the contract, subject to provision of satisfactory KYC information.

Citation
[2018] ScotCS CSIH_44
Parties
Pursuer and Reclaimer: Muhammad Asad Iftikhar; Defenders and Respondents: CIP Property (AIPT) Ltd
Jurisdiction
Scotland
Judgment Date
03 July 2018
Procedural Posture
Reclaiming Motion / Appeal Against Interlocutor of Commercial Judge
Outcome
Interlocutor of commercial judge recalled; defenders' pleas repelled; pursuer's plea sustained; declarator granted that defenders remain bound by contract; cause remitted for further procedure regarding KYC information.
Legal Topics
Rescission of Contract, Know Your Customer (kyc) Requirements, Money Laundering Regulations, Interpretation of Contract Clauses, Illegality in Contract Performance
Contract Law Property Law Anti Money Laundering Rescission of Contract Know Your Customer (kyc) Requirements Money Laundering Regulations Interpretation of Contract Clauses Illegality in Contract Performance

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Parties

Muhammad Asad Iftikhar

Pursuer and Reclaimer

CIP Property (AIPT) Ltd

Defenders and Respondents

Procedural Posture

Reclaiming Motion / Appeal Against Interlocutor of Commercial Judge

Legal Issues

  1. 1 Whether the defenders validly resiled from the contract for sale of property
  2. 2 Whether the contract required compliance with Money Laundering Regulations 2007
  3. 3 Whether performance of the contract would be illegal under AML legislation

Ratio Decidendi

The pursuer complied with the defenders' initial KYC information request by the stipulated deadline. The defenders' subsequent request for further information was legitimate, but they did not make time of the essence or provide an ultimatum. The defenders' sudden rescission was unlawful. The Money Laundering Regulations 2007 did not render performance of the contract illegal, as the defenders were able to carry out customer due diligence and rely on the pursuer's solicitor's certification. The pursuer is entitled to declarator that the defenders remain bound by the contract, subject to provision of satisfactory KYC information.

Court Disposition

Interlocutor of commercial judge recalled; defenders' pleas repelled; pursuer's plea sustained; declarator granted that defenders remain bound by contract; cause remitted for further procedure regarding KYC information.

Orders

  • Recall interlocutors of commercial judge dated December 2017
  • Repel defenders’ first and third pleas-in-law (insofar as relating to first conclusion)