Sujata Chohan v Jayendra Ved & Ors
[2024] EWHC 739 (Ch)
Jacob Beake & Ors v Jamie Richard Chapman & Ors (Re London South West SW Limited)
2 August 2023
[2023] EWHC 1986 (Ch)
High Court
A company was selling flats, but the last one couldn't be sold because the manager wouldn't sign the paperwork. The judge said the manager had to sign, because he was being unfair and it was costing money.
Key Facts
- •London South West SW Limited (the Company) was in administration.
- •Jamie Chapman was the sole director of the Company and Bodman House Management Limited (Bodman).
- •The Company was selling residential flats, and Bodman was the management company.
- •Flat 2 was the last unsold flat, and its sale was crucial for the Company's creditors.
- •Chapman refused to sign the lease for Flat 2 on behalf of Bodman, allegedly using it as leverage in a personal dispute.
- •The administrators applied for an order compelling Chapman to sign the lease.
Legal Principles
Inherent jurisdiction of the court to assist administrators in dealing with the Company's property.
Re Sabre International [1991] BCC 694
Jurisdiction of the court to restrain a trustee from committing a breach of trust.
Lewin para 40-016, Marshall v Sladden (1851) 64 ER 916
Overriding objective of the court, including ensuring matters are dealt with expeditiously and fairly, and allotting appropriate resources.
CPR 1.1(2)(d) and (e)
Outcomes
Ordered Chapman to execute the lease for Flat 2 on behalf of Bodman.
Chapman's refusal was a breach of fiduciary duty, and delaying the sale risked significant loss to the insolvent estate. The court found the matter urgent and that no good purpose would be served by an adjournment.
Ordered Chapman to pay the Applicants’ costs of £20,000 plus VAT.
Chapman's actions caused unnecessary costs.