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You are here: BAILII >> Databases >> England and Wales High Court (Chancery Division) Decisions >> Khan v Khan [2006] EWHC 1477 (Ch) (21 June 2006) URL: https://www.bailii.org/ew/cases/EWHC/Ch/2006/1477.html Cite as: [2006] EWHC 1477 (Ch) |
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CHANCERY DIVISION
Strand, London, WC2A 2LL |
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B e f o r e :
____________________
MOHAMMED ASHRAF ![]() | Claimant |
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- and - |
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MOHAMMED AFZAL ![]() | Defendant |
____________________
Ms. Krista Lee (instructed by Chetty & Co. ) for the Defendant.
Hearing dates: 26, 27, 28 April, 2, 3, 4 & 23 May 2006
____________________
VERSION
OF JUDGMENT
Crown Copyright ©
Mr Justice Hart :
"CHIC 219 High Street Walthamstow -50% partnershipAFZAL ENTERPRISES, 219 High Street Walthamstow -Director Shareholder
PYBUS Ltd (in liquidation) -Director Shareholder"
"(1) Whether the Claimant's claim to a share of the assets of the partnershipKhan
& Co arising on the dissolution of the partnership has been compromised by the agreement made between the Claimant and the Defendant referred to in paragraph 34 of the Defendant's first Witness Statement dated 14 April 2005
(2) If the answer to (1) is no, what were the terms of the partnership as to Claimant's entitlement to profits and for capital assets during the partnership and on dissolution
(3) The date of dissolution of the partnership
(4)(a) Whether any of the properties let and managed byKhan
& Co (other than jointly owned properties) formed assets of the partnership
(b) Whether any such properties (being jointly owned) formed assets of the partnership"
Issue 1 Whether the Claimant's claim to a share of the assets of the partnership Khan
& Co arising on the dissolution of the partnership has been compromised by the agreement made between the Claimant and the Defendant referred to in paragraph 34 of the Defendant's first Witness Statement dated 14 April 2005
i) Ashraf was to have no further interest in the business ofKhan
& Co. and Afzal could continue to trade under the name
Khan
& Co.;
ii) Afzal was to have no further interest in Chic Boutique which would continue to be operated by Ashraf;
iii) That Ashraf would acquire the entire legal and beneficial interest (subject to mortgages) in 51 High Street Walthamstow, 53 High Street Walthamstow and 232 Chingford Mount (these properties, consisting of 3 shops and 8 flats, being registered in their joint names);
iv) That Afzal would acquire the entire legal and beneficial interest (subject to mortgages) in 289-291 High Road Barnet and 86 Hainault Road, those properties being then registered in their joint names;
v)
That Ashraf acknowledge that he had no claim on property at 680 High Road Leytonstone (this acknowledgement being sought and obtained in the mistaken belief that this property also was registered in their joint names);
vi)
That the forgoing agreements were in full and final settlement of all Ashraf's claims against Afzal arising out of the dissolution of the partnership.
i) A letter from Ashraf to Afzal to Mr Stone of National Westminster Bank plc which read:"Re: Mahammad AfzalKhan
& Mohammad Ashraf
Khan
T/A
Khan
& Co Account No: 64216497
Will you please remove my name from the above account as I do not have any association with the company.My brother Mohammad AshrafKhan
has agreed to the above.
I thank you in advance for your cooperation and please accept my apologies for any inconvenience caused.Yours faithfully,"This was signed by Ashraf and Afzal during the meeting.ii) A further letter to Mr Stone which read:
"Re: Mahammad AfzalKhan
& Mohammad Ashraf
Khan
T/A Chic Account No: 64227197
Will you please remove my name from the above account, as I do not have any association with the company.My brother Mohammad AshrafKhan
has agreed to the above.
I thank you in advance for your cooperation and please accept my apologies for any inconvenience caused.Yours faithfully,"iii) A letter signed by Ashraf and Afzal and witnessed by Aslam which read:
"To whom it may concernMohammad AfzalKhan
has full interest in the following property
1. 289/291 High Road, Leyton, London E10 5QN2. 680 High Road, Leytonstone, London E11 3AAMohammad AshrafKhan
has full interest in the following property
1. 232 Chingford Mount Road, Chingford, London E4 8JL2. 51 High Street, Walthamstow, London E17 7AD3. 53 High Street, Walthamstow, London E17 7ADWe hereby agree to the above."iv) A further letter to Mr Stone in the following terms:
"Re: 86 Hainault Road, Leytonstone, London E11 1EHThis is to confirm that I Mohammad AshrafKhan
do not have any interest in the above property. I acted as trustee for Mr Mohammad Afzal
Khan.
Will you please remove my name from the above and transfer the whole equity to my brother Mohammad AfzalKhan
as he has full interest in the property.
I thank you in advance for your cooperation and please accept my apologies for any inconvenience caused."
"Re: 86 Hainault Road, Leytonstone, London E11 1EH
With reference to the letter to National Westminster Bank dated 3rd August 2002 I Mohammad AfzalKhan
confirm as below:
I agree to purchase the 50% share in the above property from my brother Mohammad AshrafKhan
and also confirm that Mohammad Ashraf
Khan
is willing to sell his share of the property at the market
value
less £143,000.00 (the
various
charges associated with the property).
We hereby agree to the above"
Aslam brought this letter (which I will call "v)")
to Ashraf who then signed both iv) and
v).
Issue 2: What were the terms of the partnership as to [Ashraf's] entitlement to profits and for capital assets during the partnership and on dissolution?
"I was the labourer. I lived on cash from the retail business although I could have drawn on the accounts of any of the businesses. I just did what I was told. Because it was my business I was glad to."
Issue 3 - the date of dissolution of the partnership
Issue 4 - (a) Whether any of the properties let and managed by Khan
& Co (other than jointly owned properties) formed assets of the partnership (b) Whether any such properties (being jointly owned) formed assets of the partnership"