The former director of a London housebuilder has won a lengthy legal battle over more than £2.4m owed to him by the company, 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 an earlier High Court decision in his favour.
Malik, 55, from Beaconsfield, Buckinghamshire, was a director of the builder for 20 years until he was ousted in October 2021 by a shareholder resolution approved 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 he was removed from his post, he immediately applied for the balance he was owed, which he said was £2,827,795, before taking legal action 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 contested the right to immediate repayment, insisting in a lawyer’s letter early last year that the funds represented “shareholder loans” designed to stay in business.
In a witness statement, Tariq Usmani stated that the parties agreed that they would “only realize the cash when it is agreed that it is needed or in a final sale or liquidation of the business”. A judge found that this was not supported by evidence.
“The lack of documentation to prove the alleged oral agreement is astounding,” said the judge, who ordered Henley Homes to pay Malik £2,362,152 by December 23, 2022.
However, Henley Homes appealed on four grounds, including that the judge had failed to consider evidence that undermined Malik’s case.
The latest ruling dismissed the builder’s argument.
“A judge’s decision … that a defendant has no real prospect of successfully defending a claim is a fact-finding decision,” said Lord Justice Nugee.
“It is not a pure point of law. In the circumstances, I think we should only disturb his conclusion if we are satisfied that it was not open to him. I am not so satisfied as I have already said, and would therefore dismiss the appeal.”
Henley Homes has been contacted for comment.
Henley Homes’ sister company, Henley Construct, went into administration in April owing creditors £6.7m, after most of its workers were put on unpaid leave in February.
