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Seg Bell & Anor v Ratna Singh & Anor

Two people owe over $1.5 million. The court is seizing their pension money to pay the debt. The court rejected their arguments against this.

Key Facts

  • Application for interim third-party debt orders against pensions held by Mattioli Woods Plc (£295,000) and Phoenix Life Limited (£180,000).
  • Judgment debt against defendants (Ratna Singh and Oliver Bernath) exceeding US$1.5 million based on misrepresentation.
  • Defendants' objections included allegations of tampering with oral examination records and issues with witness statements.
  • Claimants' pursuit of enforcement action against available assets, despite the existence of other creditors.
  • The need for an auxiliary order under section 37 of the Senior Courts Act 1981 to enable the third-party debt order to function with pension assets.

Legal Principles

Jurisdiction to make a third-party debt order derives from CPR Part 72.

CPR Part 72

For pensions, an auxiliary order under section 37 of the Senior Courts Act 1981 is necessary to create a debt 'due or accruing due' enabling the third-party debt order.

Section 37, Senior Courts Act 1981

The court's power to make such auxiliary orders is established by Blight v Brewster [2012] EWHC 165 (Ch).

Blight v Brewster [2012] EWHC 165 (Ch)

Outcomes

Interim third-party debt order in respect of Mattioli Woods pensions made final.

Defendants' objections deemed irrelevant or unfounded. Claimants are entitled to pursue all available assets.

Interim third-party debt order in respect of Phoenix Life pensions granted.

Requires further hearing to consider finalization.

Auxiliary order made, authorizing defendants (or claimants' solicitors in default) to take necessary steps to draw down pension benefits.

Necessary to enable the third-party debt order to operate effectively with pension assets.

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