The former director of a London housebuilder has won a lengthy legal battle over £2.4m owed to him by the company, which is run by his wife’s brothers.
Shafiq Malik is entitled to the payment after the Court of Appeal dismissed an attempt by Henley Homes to overturn a previous High Court ruling in his favour.
Malik, 55, of Beaconsfield, Buckinghamshire, was a director of the housebuilder for 20 years until being removed in October 2021 by a shareholders’ resolution passed by his brothers-in-law Tariq and Kashif Usmani.
The three directors, who were also shareholders in the company, had made substantial loans to Henley Homes, which has worked on a number of residential schemes including a 248-home scheme for Notting Hill Genesis in Wembley.
Malik said no repayment terms were agreed for the debt. When removed from his post he immediately requested the balance owed to him, which he said was £2,827,795, before issuing legal proceedings in January 2022.
Henley Homes did not dispute that its former director was in credit but gave a figure of £2,362,152. It also challenged the right to immediate repayment, insisting in a solicitor’s letter early last year that the funds represented “shareholder loans” designed to remain in the business.
In a witness statement, Tariq Usmani claimed that the parties agreed they would “only realise the cash when agreed it was needed or at an ultimate sale/winding up of the business”. A judge found this was not supported by evidence.
“The dearth of any documentation evidencing the alleged oral agreement is striking,” said the judge, who ordered Henley Homes to pay Malik £2,362,152 by 23 December 2022.
However, Henley Homes lodged an appeal on four grounds, including that the judge had failed to take into account evidence undermining Malik’s case.
The latest judgement dismissed the housebuilder’s argument.
“The decision of a judge … that a defendant has no real prospect of successfully defending a claim is an evaluative decision on the facts,” said Lord Justice Nugee.
“It is not a pure point of law. In those circumstances I think we should only disturb his conclusion if it was one we are satisfied was not open to him. I am not so satisfied as I have already said, and I would therefore dismiss the appeal.”
Henley Homes has been contacted for comment.
Henley Homes’ sister company, Henley Construct, entered administration in April owing creditors £6.7m, after the majority of its workers were put on unpaid leave in February.
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