Bank of Beirut S.A.L. and another v HRH Prince Adel El-Hashemite and another; Arab National Bank v HRH Prince Adel El-Hashemite and another

Practice – Summary judgment. The claimant Middle Eastern banks (the banks) claimed that the first defendant had falsely claimed to have an irrevocable power of attorney from them and had purportedly entered into partnerships, governed by English law, under which the relevant bank was the general partner and he was the limited partner, which he had then registered with the Registrar of Companies (the Registrar). They alleged that he had then used the certificate of registration as an instrument of fraud. The Chancery Division granted the banks summary judgment, holding that the first defendant had no real prospect of successfully defending the claims. However, the court declined to order the Registrar to delete the registration of the limited partnerships, holding that notwithstanding the circumstances which had led to the registration, once the certificate of registration had been issued, that was conclusive evidence that a limited partnership had come into existence, for the purposes of s 8C(4) of the Limited Partnerships Act 1907. The principle that fraud unravelled all was not a sufficient basis to go behind the conclusive evidence provision in s 8C of the Act.

Category: