Xenfin Fund 1 Trading Limited (in liquidation) v GFG Limited & Ors
| Judge | JOANNE WICKS KC |
| Judgment Date | 31 January 2025 |
| Neutral Citation | [2025] EWHC 172 (Ch) |
| Year | 2025 |
| Court | Chancery Division |
| Counsel | Alexander Brown,Bridget Lucas Kc,Oliver Phillips |
| Date | 31 January 2025 |
Neutral Citation Number: [2025] EWHC 172 (Ch)
Case No: BL-2023-000642
IN THE HIGH COURT OF JUSTICE
BUSINESS AND PROPERTY COURTS OF ENGLAND AND WALES
BUSINESS LIST (ChD)
Date: 31st
January 2025
Before :
JOANNE WICKS KC
sitting as a Deputy Judge of the High Court
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Between :
XENFIN FUND 1 TRADING LIMITED (IN
LIQUIDATION)
Claimant
- and –
(1) GFG LIMITED
(2) NICHOLAS HOFGREN
(3) STUART CHEEK
(4) ALI RAZA AHMAD
Defendants
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Alexander Brown (instructed by Stewarts Law LLP) for theClaimant
Bridget Lucas KC (instructed by Keystone Law Limited) for the First Defendant
Oliver Phillips (instructed by Bivonas Law LLP) for the Second to Fourth Defendants
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Approved Judgment
This judgment was handed down remotely at 10.30am on Friday 31st January 2025 by
circulation to the parties or their representatives by e-mail and by release to the National
Archives.
.............................
JOANNE WICKS KC
Approved Judgment
[2025] EWHC 172 (Ch)
JOANNE WICKS KC sitting as a Deputy Judge of the High Court:
Introduction
1.This is my judgment on a number of applications concerned with issues of service and
jurisdiction, namely:
i)an application by the Second Defendant (“Mr Hofgren”) for a declaration that
the Claimant failed to serve the claim form on him in accordance with CPR
Part 6 within the period required by CPR 7.5 and therefore that the court has
no jurisdiction to try the claim against him;
ii)an application by the Fourth Defendant (“Mr Ahmad”) seeking to set aside an
order of Master Pester dated 11 October 2023 giving permission for service on
Mr Ahmad out of the jurisdiction and by alternative means, on the grounds (a)
that the claim against him does not have a reasonable prospect of success; (b)
that England and Wales is not the proper place in which to bring the claim; (c)
that there wereneither exceptional circumstances nor goodreason to grant
permission for service by alternative means; and (d) the Claimant failed to
make full and frank disclosure to Master Pester;
iii)an application by MrHofgren,MrAhmadand the Third Defendant(“Mr
Cheek”) (to whom I shallrefertogether as “the Individual Defendants”)
pursuant to CPR 11(1)(b) for an order that the court should not exercise its
jurisdiction and for a stay of the claim against them on the grounds that the
courts of the Bailiwickof Guernsey are a more appropriate forum (“the
Appropriate Forum Application”); and
iv)an application by the First Defendant (“D1”) that, in the event that the court
decides that it should not exercise jurisdiction against the Individual
Defendants, the court should also grant a stay pursuant to CPR 11(1)(b) in
respect of the claims against D1 (“D1’s Application”).
2.The Claimant is a Guernsey non-cellular company incorporated on 10 March 2017. It
is beneficially owned by GFG Funds PCC Limited (“GFG PCC”), a Guernsey
protected cell companywhich was authorised by theGuernsey Financial Services
Commission (“GFSC”) as an open-ended collective investment scheme. Under
Guernsey law, aprotected cell companyis a singlelegal entity, comprising a core
with core assets and cells with cell assets, such assets being ring-fenced both within
the protected cell company and as against third party creditors of that company. The
Claimant was the special purpose vehicle through which one of GFG PCC’s cells,
Xenfin Securities Debt Fund 1 Cell (“Xenfin Cell”), made investments.
3.D1is a Guernsey non-cellular company licensed and regulated by the Guernsey
Financial Services Commission (“GFSC”). The Claimant contends that D1 acted as
the Claimant’s investment manager.
4.The Claimant, D1 and GFG PCC are all now in liquidation.
5.Mr Hofgren and Mr Cheek were directors of the Claimant and GFG PCC and the
ultimate beneficial owners of D1. Mr Hofgren was also a director of D1.
2
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