Lenkor Energy Trading DMCC v Irfan Iqbal Puri
| Jurisdiction | England & Wales |
| Judge | Master Dagnall |
| Judgment Date | 23 November 2023 |
| Neutral Citation | [2023] EWHC 2979 (KB) |
| Court | King's Bench Division |
| Docket Number | Case No: QB-2019-000183 |
and
[2023] EWHC 2979 (KB)
Master Dagnall
Case No: QB-2019-000183
IN THE HIGH COURT OF JUSTICE
KING'S BENCH DIVISION
Royal Courts of Justice
Strand, London, WC2A 2LL
James Collins KC and Philip Jones (instructed by Mackrell Solicitors) for the Claimant
Elizabeth Fitzgerald (instructed by Farrer & Co LLP) for the Respondent
The Defendant was not represented and did not appear.
Hearing dates: 3–5 July 2023
Approved Judgment
This judgment was handed down remotely at 2pm on 23 November 2023 by circulation to the parties or their representatives by e-mail and by release to the National Archives.
Introduction
This matter concerns the beneficial interests in two houses (“the Properties”), being 8 Brendon Street, London W1H 5HE (registered at HM Land Registry under Title No. LN72533) and 28 Brendon Street, London W1H 5HE (registered at HM Land Registry under Title No. LN80874). The Claimant, Lenkor Energy Trading DMCC (which I will call “Lenkor”) and which appears before me by James Collins KC leading Philip Jones of counsel, asserts that, while each of the Properties is registered with absolute freehold title with the registered proprietor being shown as the Respondent, Energy Plus Limited (which I will call “Energy”) and which appears before me by Elizabeth Fitzgerald of counsel, each are beneficially owned, in whole, but if not in whole then in part, by the Defendant judgment debtor, Irfan Iqbal Puri (whom I will call “Irfan”) and who does not appear, and whose asserted beneficial interests Lenkor seeks to make the subject of final charging order (“the FCOs”).
Energy contends that it is the beneficial owner; and, if that is wrong, that Irfan only owns a limited partial beneficial interest with the majority being owned by others and in particular Mohammad Puri (“Mohammad”) one of Irfan's children. Energy accordingly seeks for me both to determine and declare the true position (as also does Lenkor) and to set aside the existing interim charging orders (“the ICOs”) which Master Davison granted on 23 August 2022 and to dismiss the application, originally made by Notice of Application dated 23 August 2022, for the FCOs.
On 6 December 2022 Master Davison directed that the Court should resolve the issue “whether or not the Defendant has an interest in the properties in respect of which the ICOs might be granted.” And on 14 March 2023 Master Davison directed that the issue and whether the ICOs should be continued should be listed before me.
General History and Documents
Elements of the history are common-ground and in any event I am satisfied on the basis of the evidence before me, on the balance of probabilities, that such have been proved. However, there are various disputes regarding what happened at various times during the history, and I either resolve them or record them when setting out the following.
The Puri Family
Mazhar Iqbal Puri (“Mazhar”) was the patriarch of the Puri family which family was historically located in Pakistan. Mazhar was the father of Irfan and other children (“the Siblings”) one of whom was Shahina Puri, and the husband of Zarina Puri; and Irfan is married to Naveen Puri (“Naveen”) and is the father of Mohammad and also three other children (“the Other Children”) being Abdullah Puri, Natasha Puri and Ibrahim Puri. Mazhar died in 2003. This is all common-ground and I find it to be the case. However, there is a dispute as to what was the extent of Mazhar's assets although Energy says that they were substantial and spread across various jurisdictions including Pakistan.
The Incorporation Of Energy
On 1 August 1994 Energy was incorporated under the laws of the Cayman Islands with 100 issued shares, shown on its register of members as having been originally issued to Fairfield Nominees Limited but on 8 August 1996 as having been vested in Caversham Nominees Limited and Caversham Holdings Limited (which, together with Caversham Secretaries Limited, I will call “Caversham” and all of which were of “Malzard House”, Jersey).
Very few of the corporate records of Energy have been produced by Energy, or anyone else. Some have appeared from the documents which were disclosed into the public domain as part of what have been called “the Panama Papers”). There are no documents available for the early years. It is in dispute as to who set up and who beneficially owned Energy, or assets held in its name, and when.
The 1996 Document
There exists, signed by Mazhar, a document (“the 1996 Document”, which bears a one hundred Rupee duty stamp, and an Advocate's signature and stamp with a date of “08 Jul 1996”, and a notary's signature and stamps dated “17.7.96”, and which appears to be intended to be formal in nature) which reads:
“ DECLARATION
I Mazhar Iqbal Puri son of Mohammad Shareef Puri holder of Pakistan National Identity Card number 517-34-253086 residing at D-47 Block-6, P.E.C.H.S., Karachi hereby declare that I own Energy Plus Ltd. (“Energy”) a nonresident company registered under the laws of the Cayman Island with registration number 55296, incorporated on 1st August 1994.
It is declared for good order and record that I registered Energy for personal and family investments, for which I have allocated GBP 1,200,000.00 (One Million Two Hundred Thousand Pounds) for purchase of appropriate properties in London. I have appointed my son Irfan Iqbal Puri (“Irfan”) as my authorized attorney to purchase and manag (sic) all such purchased properties for the benefit of the family. All other children have been made aware of Energy and my instructions to Irfan, to which they agree.
This declaration is being made for record to ensure that my wishes behind registration of Energy are executed and that none of my children enter into any conflict after my death.
This original certificate will remain in my possession while a copy hereof is being handed over to each of my children for record.
[signed]
Mazhar Iqbal Puri
17 th July, 1996.”
The 1996 Document is only before me in copy form. In a witness statement of 28 June 2023, Thomas Dobson, a solicitor at Farrer & Co. LLP (“Farrers”), solicitors for Energy, stated that following, Mr Dobson had been told, discussions between Irfan and Mohammad, both an Omair Nisar (“Nisar”), a lawyer in Pakistan (who acts for one of Mohammad's companies), and Mohammad, told Mr Dobson that: the 1996 Document existed; and had been held by another Puri family member (Akbar Puri); but had been physically delivered to Nisar by hand by an unknown person. Nisar then electronically sent to Mr Dobson the 1996 Document as it is before me. Mr Dobson stated that Nisar had opined that under Pakistan law and practice, the original of the 1996 Document might have been thought not to require preservation. I asked Mr Collins KC whether he accepted that the 1996 Document was authentic and he said that the Claimant was not asserting that it was a forgery. In view of that concession, and as was supported by Mr Dobson's evidence and where the 1996 Document appears to me to be credible both as a document and in context, I regard the authenticity as having been proved on the balance of probabilities and that I should proceed on the basis that it is authentic.
The Acquisition and Registration of the Title of the Properties
8 Brendon Street was transferred by a Land Registry Transfer dated 20 September 1996 (“the 1996 Transfer”) for £360,000. The Transfer was written to be to Energy, but with the name IRFAN IQBAL PURI crossed out in favour of a handwritten insertion of Energy's name, of “Haring Ross Gagrat and Gardi, 5 Richbell Place, London WC1N 8BZ”.
28 Brendon Street was transferred by a Land Registry Transfer dated 30 September 1997 (“the 1997 Transfer”) for £362,500. The Transfer was written to be to Energy, of “Haring Ross Gagrat and Gardi, 5 Richbell Place, London WC1N 8BZ”. I refer to the firm of Haring Ross Gagrat and Gardi as “HRGG”.
On 6/7 October 1997 HRGG submitted an application to the Land Registry to register the 1996 Transfer although with a DX address in Wembley and which resulted in Energy being registered with the title to 8 Brendon Street. On 25 November 1997 HRGG made a similar application with regard to 28 Brendon Street and which resulted in Energy also being registered with that title. I note that HRGG's covering letter gave the 5 Richbell Place address and the Wembley DX number and also a “Property & Private Client Dept.” address at 273 Preston Road, Harrow (“the Harrow Address”), and also listed as a consultant “H.D. Gardi” and as Associated Offices “Gagrat and Gardi, Legal Consultants” at an address in Dubai (“the Dubai Address”).
There is no dispute as to the authenticity of the above documents. I have no other documents regarding the acquisition or funding of the purchases of the Properties and none have been disclosed by Energy, notwithstanding an order for standard disclosure made by Master Davison on 15 March 2023. Mohammad asserts that he has carried out a search and made enquiries of the directors and others referred to in the corporate records (being those mentioned below) but other documents relating to the purchase or being corporate records have not been located.
The Corporate Records of Energy
The next corporate document which I have for Energy is part of a Cayman Islands Annual Return referring to an Annual General Meeting held on 2 November 1998 and which states that the shareholders in Energy were Caversham Nominees Limited and Caversham Holdings Limited (i.e. “Caversham”), who owned 50 shares each, both with Jersey addresses being “Malzard House”. I have a similar part of a Cayman Islands Annual Return referring to an Annual General Meeting held on 4 November 1999.
I then have a Cayman...
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