Re Grosvenor Property Developers Ltd (In Liquidation)  EWHC 1114 (Ch)
A sprawling and complex cross-border fraud litigation being pursued by the Joint Liquidators of Grosvenor Property Developers Ltd has reached a significant milestone. The counsel team led by Rory Brown (Martin Young, Nora Wannagat, and the current pupil in chambers, Andrew Shipley) has been involved in 27 heavily contested hearings (in London and Dubai) in the last 13 months.
On 13 May 2020, Deputy Insolvency and Companies Court Judge Agnello QC gave judgment against two of the five defendants. The First Defendant was found to: (1) be a de facto director of the Company, (2) have unlawfully spent significant sums of Company money on himself, (3) have paid over £3 million to the Third Defendant (the First Defendant’s company incorporated in the UAE), and (4) have fabricated a release and settlement agreement to explain the payments to the Third Defendant. The First and Third Defendants were held to be liable to the Company in the sums of £5,543,973 and £3,845,406 respectively (including compound interest). Both were ordered to pay costs on an indemnity basis by reason of their conduct. The approved judgment can be found here.
On 8 June 2020, the Joint Liquidators’ application to commit the First Defendant to prison for breaches of court orders, in particular asset disclosure orders made in support of freezing orders, will be heard over a five-day trial in the High Court of Justice (ChD).
On 15 June 2020, the Joint Liquidators’ case against the Second, Fourth and Fifth Defendants will be heard over a ten-day trial, also in the High Court of Justice (ChD).