Case details

Rangoonwala v Khan and others (Respondents) (British Virgin Islands)

Case ID: JCPC 2017/0006

Jurisdiction: The Court of Appeal of the British Virgin Islands

Case summary

Issue(s)

Was the Court of Appeal entitled to reach the conclusions that

  1. the ZVM Trust ("the Trust") held shares in three companies, in addition to the sole shareholding found by the trial judge;
  2. the 1998 appointment of the entirety of the Trust assets to the Second Appellant should be set aside; and
  3. the Second Appellant was liable to account as constructive trustee in respect of assets he received pursuant to the 1998 appointment.
Facts

The deceased set up a discretionary trust in 1982 for the benefit of members of his family, which included the Respondents (the deceased’s daughter and her family) and the Second Appellant (the deceased’s son) ("Asif"). The First Appellant ("Gany") was the trustee of the Trust, and Asif was director of Gany, and appointer of the Trust from 1998. Following the deceased’s death, Asif asserted that the trust had no significant assets. In December 1998, after the deceased’s death, Gany passed a resolution to appoint the entirety of the Trust assets to Asif. In January 2012, the Respondents sought disclosure from Gany of information relating to the assets of the Trust. In April 2012, an account was ordered of the Trust assets. The Respondents did not accept Gany’s account, believing that the Trust had more substantial assets. The Respondents therefore filed a claim against Gany and Asif seeking to have Gany removed as trustee of the Trust and Asif removed as appointor, as well as a declaration that the 1998 appointment was void or liable to be set aside, and a declaration that Asif was liable to account as constructive trustee on the basis of knowing receipt and/or knowing assistance. The Commercial Court judge dismissed the Respondents’ claims. The Court of Appeal allowed their appeal. Gany and Asif now appeal to the Judicial Committee of the Privy Council.

Parties

Appellant(s)

Asif Rangoonwala

Respondent(s)
  1. Zorin Sachak Khan
  2. Afaque Ahmed Khan
  3. Sasheen Anwar

Appeal

Justices

Lord Reed, Lord Sumption, Lord Hodge, Lord Lloyd-Jones, Lord Briggs

Hearing start date

14 Jun 2018

Hearing finish date

14 Jun 2018

Watch hearing
14 Jun 2018 Morning session Afternoon session