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England and Wales High Court (Chancery Division) Decisions |
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You are here: BAILII >> Databases >> England and Wales High Court (Chancery Division) Decisions >> Ali & Anor v Miah & Anor [2024] EWHC 1818 (Ch) (05 June 2024) URL: http://www.bailii.org/ew/cases/EWHC/Ch/2024/1818.html Cite as: [2024] EWHC 1818 (Ch) |
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BUSINESS & PROPERTY COURTS OF ENGLAND AND WALES
CHANCERY APPEAL (ChD)
Fetter Lane London |
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B e f o r e :
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IN THE MATTER OF (1) ENUS ALI (2) MOHAMMED ABDUL WAHID |
(Appellants) |
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- v - |
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(1) MUHAMMAD MODU MIAH (2) MONSHUR BARI |
(Respondents) |
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Ludgate House, 107-111 Fleet Street, London EC4A 2AB
Tel: 0330 100 5223 | Email: [email protected] | uk.escribers.net
SIMON BUTLER appeared on behalf of the Respondents
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Crown Copyright ©
MR JUSTICE RICHARDS:
BACKGROUND TO THE DISPUTE
a. as at 14 December 2022, there were three trustees of the trust: Mr Miah, Mr Ali and Mr Wahid, since a purported removal of Mr Miah by Mr Ali and Mr Wahid was of no effect.
b. He did not believe the evidence of Mr Ali, given orally at the December 2022 Hearing, to the effect that neither he nor Mr Wahid had consented to the Trust bringing the County Court Proceedings.
a. Ground 1: Mr Miah was not entitled to rely on the power conferred by s36 of the Trustee Act because that power had been ousted by the instrument creating the Trust.
b. Ground 2: even if Mr Miah was in principle entitled to rely on s36 of the Trustee Act, the Judge erred in concluding that the Appellants were "unfit" to act as trustees with the result that there was no trigger for exercise of the power conferred by s36.
LEGISLATIVE PROVISIONS
36 Power of appointing new or additional trustees.
(1) Where a trustee, either original or substituted, and whether appointed by a court or otherwise, is dead, or remains out of the United Kingdom for more than twelve months, or desires to be discharged from all or any of the trusts or powers reposed in or conferred on him, or refuses or is unfit to act therein, or is incapable of acting therein, or is an infant, then, subject to the restrictions imposed by this Act on the number of trustees,—
(a) the person or persons nominated for the purpose of appointing new trustees by the instrument, if any, creating the trust; or
(b) if there is no such person, or no such person able and willing to act, then the surviving or continuing trustees or trustee for the time being, or the personal representatives of the last surviving or continuing trustee;
may, by writing, appoint one or more other persons (whether or not being the persons exercising the power) to be a trustee or trustees in the place of the trustee so deceased remaining out of the United Kingdom, desiring to be discharged, refusing, or being unfit or being incapable, or being an infant, as aforesaid.
[…]
(8) The provisions of this section relating to a trustee who is dead include the case of a person nominated trustee in a will but dying before the testator, and those relative to a continuing trustee include a refusing or retiring trustee, if willing to act in the execution of the provisions of this section.
(2) The powers conferred by this Act on trustees are in addition to the powers conferred by the instrument, if any, creating the trust, but those powers, unless otherwise stated, apply if and so far only as a contrary intention is not expressed in the instrument, if any, creating the trust, and have effect subject to the terms of that instrument.
GROUND 1
The instruments creating the Trust
9 Appointment of Trustees
(i) There must be at least [three] Trustees. Apart from the first Trustees, every Trustee must be appointed [for a term of two years] by a resolution of the Trustees passed at a special meeting called under clause 15 of this deed.
(ii) In selecting individuals for appointment as Trustees, the Trustees must have regard to the skills, knowledge and experience needed for the effective administration of the Charity.
(iii) The Trustees must keep a record of the name and address of the dates of appointment, re-appointment and retirement of each Trustee.
(iv) The Trustees must make available to each new Trustee, on his or her first appointment:
a) a copy of this deed and any amendments made to it;
b) a copy of the Charity's latest report and statement of accounts.
(v) The first Trustees [which included Mr Ali and Mr Wahid] shall hold office for the following periods respectively: five years.
Clause 9, sub-clause (v) inclusive of the [Declaration of Trust] to be deleted as from here onwards first Trustees shall hold office until they retire.
10 Eligibility for trusteeship
(i) No one shall be appointed as a Trustee:
(a) if he or she is under the age of 18 years; or
(b) if he or she would at once be disqualified from office under the provisions of clause 11 of this deed.
(ii) No one shall be entitled to act as a Trustee whether on appointment or any re-appointment as Trustee until he or she has expressly acknowledged, in whatever way the Trustees decide, his or her acceptance of the office of Trustee of the Charity.
11 Termination of trusteeship
A Trustee shall cease to hold office if he or she:
(i) is disqualified for acting as a Trustee by virtue of section 72 of Charities Act 1993 or any statutory re-enactment or modification of that provision;
(ii) becomes incapable by reason of mental disorder, illness or injury […] managing his or her own affairs
(iii) is absent without the permission of the Trustees from all their meetings held within the period of 3 months and the Trustees resolved that his or her office be vacated; or
(iv) notifies to the Trustees a wish to resign (but only if enough Trustees will remain in office when the notice of resignation takes effect to form a quorum for meetings).
12 Vacancies
If a vacancy occurs the Trustees must note the fact in the minutes of their next meeting. Any eligible Trustee may be re-appointed. So long as there are fewer than three Trustees, none of the powers or discretions conferred by this deed or by law on the Trustees shall be exercisable by the remaining Trustees except the power to appoint [new] Trustees.
Analysis
GROUND 2
The Judge's conclusions
The conduct of Mr Ali and Mr Wahid here would, in my judgment, justify their removal by the court. They wrongly denied having authorised the bringing of the proceedings. They both submitted witness statements to that effect, albeit those were ruled inadmissible in the event for not being in their own language. Mr Ali gave oral evidence, as I have said, to the same effect. In the context of what the Trust is currently dealing with, I do regard that conduct as making them unfit to be trustees. The Trust is fighting to protect its use of the Premises. These proceedings are plainly designed to protect the claimed interest of the Trust in the Premises. But the denial of Mr Ali and Mr Wahid worked very much against that. If accepted, it would likely have resulted in the striking out of the proceedings. The rightness of the conclusion I have reached is, in my judgment, underlined by the absence of any evidence from Mr Ali or Mr Wahid on this application explaining their conduct.
a. Both Appellants submitted witness statements in the December 2022 Hearing.
b. Mr Wahid's statement was short. In it he said that Mr Miah had not told either him or Mr Ali about the County Court Proceedings. He confirmed that he agreed with Mr Ali's witness statement. Mr Wahid signed his witness statement himself.
c. Mr Ali's witness statement was also short (some six paragraphs in length, running to less than two pages). It also stated that Mr Miah had not informed either Mr Wahid or Mr Ali about the County Court Proceedings. Mr Ali's witness statement was signed, not by Mr Ali, but by his barrister as was made clear in paragraph 6.
d. HHJ Roberts refused to admit either witness statement as evidence in the December 2022 Hearing for two reasons. First, neither had been prepared in the first language of Mr Ali and Mr Wahid. Second, Mr Ali's witness statement suffered from the additional defect of having been signed by his barrister rather than by Mr Ali himself.
e. Nevertheless, HHJ Richard Roberts allowed Mr Ali, who was present at the December 2022 Hearing, to give oral evidence through an interpreter. Mr Wahid was not present at the hearing and so he gave no oral evidence.
f. In his oral evidence at the December 2022 Hearing, Mr Ali said that he did not know about the County Court Proceedings. However, Mr Miah's case, put to Mr Ali in cross-examination, was that Mr Ali knew full well about the County Court Proceedings because he knew that a solicitor was being instructed and had visited a bank branch to withdraw £6,000 to pay that solicitor.
30. Where there is a conflict in the evidence, between Mr Miah and Mr Ali, I prefer the evidence of Mr Miah. I found Mr Ali to be an evasive witness. He frequently did not answer straightforward questions. I make all due allowance for the fact that he was giving evidence through an interpreter, but even making that allowance the questions were often quite straightforward. But what he did agree was that he was summonsed to the bank, that he knew that he was being asked to withdraw money to pay to the solicitor and that this was because of Mr Bari going into possession of the mosque. I find that he did know that Mr Miah wanted to withdraw money to pay for a solicitor to bring injunction proceedings and he agreed.
31. Although I prefer Mr Miah's evidence to that of Mr Ali, I accept the evidence of Mr Ali that when he was at Lloyds Bank in East Ham he spoke at the telephone to Mr Wahid and relayed to him precisely what he was doing and why they were instructing solicitors, namely because the mosque had been locked by the defendant.
32. I find that what has happened in this case is that, subsequently, there has been an outcry in the local community about the mosque being locked in the light of the local community having made donations to the mosque, and Mr Ali has changed his position. Indeed, on 4 June 2022, Mr Ali entered into a meeting which was not in accordance with the trust deed, whereby nine new trustees were appointed, which it is accepted was not lawfully achieved in this case because there should have been a special meeting pursuant to clause 15.
Criticisms of the Judge's conclusions on "unfitness"
a. There was no admissible evidence that Mr Ali and Mr Wahid would prevent the County Court Proceedings from continuing. Rather, the evidence before the Judge established only that they favoured an out-of-court settlement with Mr Bari instead of litigation.
b. The Judge should not have taken into account Mr Ali's witness statement, which was excluded from the December 2022 Hearing.
c. It is not unusual for trustees to have different views on litigation tactics. The Judge erred in concluding that holding such differences made Mr Ali and Mr Wahid "unfit" to be trustees.