Judgment has been handed down in Hellard v Khan [2024] EWHC 1130 (Ch), in which ICC Judge Mullen considered that the liquidator of a company was entitled to summary judgment in his claim against the director. 

The liquidator’s claim arose out of an MTIC fraud and was brought under ss.212 and 213 of the Insolvency Act 1986. The director’s defence – that he had not known about the fraud – was struck out, on the basis that it would be an abuse of process to run a defence that was inconsistent with earlier findings of the First-tier Tribunal (Tax Chamber) to the effect that the director had both means of and actual knowledge of the MTIC fraud. Summary judgment was granted accordingly, notwithstanding that (i) neither the liquidator nor the director had been a party to those proceedings, and (ii) the Tribunal had made no explicit findings of dishonesty (which was a necessary ingredient of the liquidator’s claim against the director).

Faith Julian was instructed by Edward Starling and Connor Pierce of Wedlake Bell LLP, and acted for the Liquidator, Kevin Hellard of Grant Thornton UK LLP.

Judgment can be viewed here.