High Court Analyzes Complex Contractual Issues in Rajan Lekhraj Mahtani & Ors v Atlas Mara Limited & Anor Judgment

Citation: [2024] EWHC 218 (Comm)
Judgment on


In the judgment of Rajan Lekhraj Mahtani & Ors v Atlas Mara Limited & Anor, the High Court of Justice King’s Bench Division delved into complex issues surrounding a Share and Sale Purchase Agreement (SPA). This meticulous judgment, which navigated through contractual interpretations, requirements for the performance of obligations, causation, and quantum of loss, offers valuable insights into UK commercial contract law. The analysis that follows will shed light on key legal principles applied in this case, specifically those governing contracts, their breach, and implications thereof.

Key Facts

The case involved claims by the Claimants related to alleged breaches of an SPA, through which they sold shares in Finance Bank Zambia (FBZ) to the Defendants. Central to the claims were the Fund Raising Agent Claim, the Building Society Claim, and the Escrow Shares Claim. Each claim examined different facets of the SPA, focusing on whether the Defendants acted reasonably, fulfilled their obligations, and if their conduct caused any loss.

The Fund Raising Agent Claim assessed the Defendants’ alleged obstruction in appointing a Fund Raising Agent, the Building Society Claim dealt with the sale of a subsidiary (FBS), and the Escrow Shares Claim concerned the timing of the release of certain escrow shares.

The court applied the following legal principles:

  • Contractual Interpretation: Analyzing whether the SPA granted Dr. Mahtani a right to purchase FBS or if the Defendants breached the agreement in not selling FBS by the specified date. This principle hinged on the construction of the SPA, with the court examining clauses holistically, in context, and against the backdrop of contractual obligations.

  • Breach of Contract: Scrutinizing conditions precedent such as the necessity of regulatory approvals, provision of a draft SPA, timely initiation by Dr. Mahtani, and the Defendants’ failure to provide reasons for not releasing escrow shares. This entailed assessing activities required for contract completion, including necessary actions and joint decisions.

  • Causation and Loss: Establishing the connection between any breach and resultant loss. The court distinguished between actual breaches leading to quantifiable loss and scenarios where the outcome would be the same regardless of breach due to external regulatory requirements. This distinction is crucial in determining damages.

  • Quantum of Loss: When quantifying damages, the court considered the difference between the value of escrow shares at the end of lock-in periods against their current (nil) value, illustrating the principle that compensation is pegged on actual loss experienced due to breach.

In addition to these principles, the court employed the concept of ‘loss of chance’, evaluating whether the Claimants lost a substantial chance of obtaining funds through breach. This reinforced the principle that damages could be awarded for lost opportunities directly resulting from a breach.


The judgment decisively concluded that the Claimants’ multiple claims failed. The court found no breach by the Defendants, specifically noting that:

  • The Defendants had not acted unreasonably regarding the Fund Raising Agent Claim.
  • The contractually specified procedures for the Building Society Claim were not followed, rejecting the notion that Dr. Mahtani was entitled to purchase FBS for KMW 1.
  • There was no obligation on the Defendants to act unilaterally concerning the Escrow Shares Claim.

The judgment also dismissed the Defendants’ counterclaim.


Rajan Lekhraj Mahtani & Ors v Atlas Mara Limited & Anor is a salient reminder of the importance of clarity and precision in contractual terms, the extent to which parties are bound by their agreements, and the differentiated assessment of obligations within a contract. The court’s systematic approach underscores that, for a successful claim of breach, there must not only be an established breach but also causation and loss directly resulting from it. This case reinforces that in UK commercial law, the success of claims relies heavily on the interplay between the precise terms of a contract and the actual conduct of the parties in fulfilling those terms.

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