COURT OF APPEAL (CIVIL DIVISION)
ON APPEAL FROM Leicester County Court
His Honour Judge Mayor QC
5NN01669
Strand, London, WC2A 2LL |
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B e f o r e :
Vice President of the Court of Appeal, Civil Division
LADY JUSTICE HALLETT
and
LORD JUSTICE TOULSON
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Choudary |
Appellant |
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- and - |
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Nawaz & Ors |
Respondents |
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Shakil Najib (instructed by Messrs DFA Law) for the 1st Respondent
Marilyn Kennedy-McGregor (instructed by Messrs Turner Coulston) for the 2nd to 4th Respondents
Hearing date : 5th December 2007
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Crown Copyright ©
Lord Justice Waller :
The background
"1. For the past four days the court has been concerned with a partnership dispute between a group of businessmen. The business in which they have been engaged which gives rise to the dispute between them is the business of providing accommodation, food and pocket money for refugees and asylum-seekers. Let it not be thought that that statement of so charitable a purpose explains the character of the business in which these gentlemen themselves have been engaged for, by a remarkably lax and uncontrolled system, at least during the years with which this litigation is concerned (principally the years 1999 and 2000, but perhaps still today – I know not), huge sums of public money are expended through outlets over which there is little control.
2. The system, if that is not too generous a word to employ, is that a group of individuals (such as the parties in this case) identify, by means that has not been explored or explained, numbers of asylum-seekers (I will use that single term rather than refugees and asylum-seekers from here on) who are desirous of obtaining accommodation and food and pocket money, and those individuals, as a sort of gang-master, approach a local authority and are permitted by the local authority to act as brokers, to take very substantial funds from the local authority. They then use those funds to house and provide board for the asylum-seekers in properties which they, the individuals, have rented and in which they provide the accommodation of so many to a house and the food such as it may be and the pocket money or so much of it as the asylum-seekers in truth receive. And they make charges themselves to the asylum-seekers of which, so far as the evidence in this case is concerned, there is no proper documentary record whatever. Indeed, the majority of asylum-seekers referred to here are people who could not speak English, let alone write it or check what was being written. Then, in turn – and this may be one of the reasons for the slackness of the system, the local authorities recover the funds thus expended by them from the central government.
3. The amounts of money involved are huge by any standards. . . ."
"In Leeds – and I shall refer to this again in due course – when the claimant himself was bold enough to put in substantial claims for these payments in respect of alleged asylum-seekers, housed allegedly in properties that he had taken leases of in Leeds, he was said by the County Council not to have housed any such asylum-seekers at all in those properties. The claimant disputed and continues to dispute that, in the face of cogent evidence – and I have only seen a small part of it; a witness statement by someone in the social services department for Leeds City Council recording her own observations and those of her colleagues who had been to the properties where there were supposed to be all these asylum-seekers packed like sardines in a tin, and not a sign of one of them. And although there is abundant evidence in this case, as one knows there is from reading newspapers and the like, inevitable complaints from neighbours of properties which are used for housing asylum-seekers, at least the neighbours to these properties in the back streets of Leeds had been blissfully unaware that any asylum-seekers were sharing their district of the City. And so, the Leeds City Council refused to pay. On the necessarily limited evidence which I have heard – and I am not trying that case – I have formed the view that the truth lay with the Leeds City Council and not with this claimant. I shall be reviewing his worth as a man of truth and a witness in due course in this judgment. Nevertheless, boldly, he actually set out to sue the Leeds City Council in the Leeds County Court to recover the money which they were refusing to pay to him and he prosecuted the action as far as beginning to give evidence at the trial itself. It was only when two of the defendants in this case, partners with him (although the action he had brought was in his own name and not in that of any partnership or together with any other persons) learnt of what was going on and made statements supporting the Leeds City Council's case, that finally this bold action was withdrawn. It is some relief at least to see that there is some limit to the audacity, indeed the brazenness, of this claimant."
"I was aware that Mr Choudary (the claimant) had properties which were used for rental. If they were vacant he may make them available to me if I had clients and I used some properties which he had sublet from other landlords. In this way money did pass between us but this was not a business as such as it only occurred occasionally as a matter of convenience."
"I am entirely satisfied – and this may be important when I turn to the next chief topic in this judgment – that the explanation for that given in paragraph 2 of his witness statement and in oral evidence by the fourth defendant is the only one which fits satisfactorily with the other oral and, more significantly, documentary evidence in this case. That is to say, that those properties had been leased by the claimant but that the claimant at the material time could not fill them with what were perhaps somewhat euphemistically called "tenants" (that is to say, asylum-seekers), so the fourth defendant used the properties himself and paid the claimant in cash. That, it seems to me, is the only credible explanation for what was happening and, of course, it makes sense. Having rented a property in the hope that the claimant could fill it with asylum-seekers, and being unable to do so, the property becomes, rather than a source of profit, a liability; the landlord will be looking for the rent. Therefore, what more obvious and sensible resort than to allow another person engaged in the same asylum-seeker business to use them so that at least the rent could be paid without loss to the claimant himself? I accept that evidence from the fourth defendant, and it follows that I reject the contention upon which he laid such reliance by the claimant that the evidence to connect those properties with certain of the other defendants is of assistance to him in proving his claim."
"It seems to me, therefore, that the conclusions the court must reach are inevitable. First, the claimant never was a party to any agreement with any persons with regard to the setting up of or his participation in Northern Accommodation Agency. The furthest that the matter ever went was that he was one of a number of potential participants by taking partnerships in that partnership and he never in fact took it up. It is plain that the partnership began, as is reasonable and sensible, in a hesitant way; first, with the two initial partners committing themselves, as one can see on the earlier of the two bank mandates I have referred to, and then the remaining partners coming in subsequently as they decided to enter. The claimant simply was not one of those. That is fatal to his claim and disposes of it. But equally this, for completeness sake if no other, that no agreement averred by the claimant is capable of falling within the legal definition of a partnership to which I have already referred: neither in point of fact nor of law do the agreements which he says he made amount to such arrangements as would consist of a partnership in English law. Accordingly, this claim fails and there will be judgment for the defendants against this claimant."
What about the fresh evidence?
"The court will not consider evidence which was not before the court below unless it has given permission for it to be used. It is no longer necessary to show 'special grounds'. The discretion must also be exercised in accordance with the overriding objective of doing justice. However, in Banks v Cox (17 July 2000, unreported); Court of Appeal (Civil Division) Transcript No 1476 of 2000, Morritt LJ said:
'In my view the principles reflected in the rules in Ladd v Marshall [1954] 1 WLR 1489 remain relevant to any application for permission to rely on further evidence, not as rules but as matters which must necessarily be considered in an exercise of the discretion whether or not to permit an appellant to rely on evidence not before the court below'."
"Ground 1
1. There ought to be a retrial of the action because there is new evidence available to the Claimant (which was not before the Learned Judge) and which would have had an important influence upon the result of the trial. The evidence is:
a. A letter from Wakefield Metropolitan District Council dated 19 December 2006 confirming that it has made payments to the Claimant trading as Yorkshire Properties, 97 Kettering Road, Northampton;
b. A tenancy agreement dated 1 July 1999 in respect of 41 Dorset Mount Road, Leeds showing Ilyas Bhatti's address as 75 Ether Street, Northampton; and
c. A tenancy agreement dated 18 October 1999 in respect of 59 Knox Road, Wellingborough signed by Ilyas Bhatti on behalf of Yorkshire Properties as tenant.
2. This new evidence would have had an important influence upon the result of the trial for the following reasons:
a. The Claimant's case that he carried out business from 97 Kettering Road is supported by the letter from Wakefield Metropolitan District Council referred to above.
b. Ilyas Bhatti denied any knowledge of 75 Ether Street, Northampton. The tenancy agreement dated 1 July 1999 showing his address as 75 Ether Street is prima facie evidence that his evidence in this respect was false.
c. Ilyas Bhatti denied any dealings in respect of 59 Knox Road, Wellingborough and any dealings with Yorkshire Properties. The tenancy agreement dated 18 October 1999 is prima facie evidence that this evidence was false.
3. Further, the Claimant is in the process of obtaining expert evidence from a handwriting expert to establish that signatures on the cheque dated 30 March 2001 and the tenancy agreement dated 18 October 1999 were signed by Ilyas Bhatti who denied that both of these signatures were his during the trial. This evidence would have had an important influence upon the Learned Judge's assessment of Ilyas Bhatti's evidence. Had the learned Judge had the benefit of the anticipated handwriting expert evidence, he is less likely to have made his finding that the Claimant tried to deliberately deceive the court. On the contrary, the Learned Judge is likely to have found that the Claimant was telling the truth and that Ilyas Bhatti's evidence was discredited.
4. The Claimant is also in the process of obtaining expert evidence from a handwriting expert to establish that the letter dated 23 November 1999 at page 146 of the trial bundle was signed by Tariq Bin Younis on behalf of West Yorkshire Properties. This was denied by Tariq Bin Younis."
"I am unable to exclude the possibility that the signatures appearing on these copy questioned documents could have been transferred from other documents bearing genuine signatures of the parties concerned. Transposition by way of either photocopied, cut and paste or by computer scanning and reprinting are simple processes and, if undertaken with a modicum of care, are generally not detectable."
a) The letter from Wakefield MDC dated 19 December 2006. This was produced to support a case that payments were made to Yorkshire Properties. Wakefield MDC have, however, produced a letter, signed by the claimant, headed Yorkshire Property and Investment and Management, dated 30 September 1999, asking for payments to be made into his personal account. At one time, Mrs Kennedy McGregor, was going to assert that a deliberate attempt was being made to mislead the court, but Mr Dingemans took the wind out of her sails by accepting the letter did not show trading by Yorkshire Properties at 97 Kettering Road, but did show the claimant was trading there through his own business. Whether or not at some stage an attempt was going to be made to lead the court to think that West Yorkshire Properties were trading there matters not. I simply do not see how the letter adds anything to the claimant's case for establishing membership of a partnership in November/ December 1999.
b) The Tenancy Agreement bearing a date 1 July 1999 showed Oaklands Investments as Landlord and Ilyas as tenant with an address at 75 Ether Street Northampton, the subject of the tenancy being 41 Dorset Mount which was a Leeds property. At the trial in the bundle were simply two pages of this document and it was being put to Ilyas as relevant to the question whether he was in partnership with the claimant in July 1999 (the sub-plot). When cross examining Ilyas counsel was handed a further document which we were told was in fact the complete original tenancy agreement bearing Ilyas' signature. But counsel on his feet thought what he was being handed was the original of the copy document in the bundle but seeing that it was in fact in slightly different form decided not to put it in evidence or to the witness. Mrs Kennedy McGregor representing Ilyas offered herself to put the document in because she did not want to mislead the judge about the fact that this original document did contain Ilyas' signature but counsel for the claimant objected. The document cannot as it seems to me even be described as fresh evidence, and in the light of the way it was dealt with at the trial it should not be admissible on an appeal. I should add that since it relates if anything to the subplot and not to the main issue its impact would have been slight indeed. Furthermore it provides no excuse whatever for a late application for permission to appeal.
c) At page 125 of our bundle is what is suggested to be a shorthold tenancy agreement signed by Younis where the tenant is Yorkshire Properties commencing on 18 October 1999 relating to 59 Knox Road Wellingborough. This document was evidently obtained from the files of a Mr Bill Wych before the trial and an attempt was made to put it in evidence on the first day of the trial. The judge was strict with both parties in relation to producing as he put it "rabbits out of the hat" and ruled that he would not allow documents simply to be put in without a proper application to do so. That is where this matter was left. Thus once again this document is simply not fresh evidence obtained since the trial. It furthermore once again provides no excuse for delaying applying for permission to appeal.
d) The cheque a copy of which is at page 124 of our bundle was said to be what was available at the trial. Actually if one goes to the main trial bundles the document available was in slightly different form – it is at page 242. The relevance of that is that what is now sought to be put in evidence is the cheque as recovered from the bank after the trial in December 2006 which has on it the signature of Ilyas. When he was being cross examined by reference to the document in the trial bundle he did not accept that it was established that he had signed the cheque. His signature was not apparent on the copy shown to him. It is now accepted that he did sign the cheque. Was there any excuse for the claimant not having the original cheque available at the trial? It seems to me there was none. The claimant had no difficulty getting the cheque after the trial and the cheque had been with the bank all the time. I would add that it may even be possible that at one point in time the claimant had the original cheque before the trial because the document in the trial bundle seems to be that cheque with a piece of paper almost covering the signature on the cheque with the claimant's writing on it. Once again this document on any view provides no excuse for delaying applying for permission to appeal.
e) Next I deal with the document at page 126 of volume 2 of our bundles about which there was considerable debate at the trial as to its authenticity. The document is apparently signed by Younis with a date 23-11-99 underneath the signature. It is headed W. Yorkshire Properties 97 Kettering Road Northampton with various telephone numbers one of which was the claimant's mobile number. It was addressed Dear Sir/Madum. Robert Radley in his report states that the signature is authentic but the question is whether the signature has been placed there by use of a photocopying machine. Since the document was available at the trial it is not itself fresh evidence in that way. The only fresh evidence could be the report of Robert Radley but he does not deal (because he cannot) with the allegation that the signature was placed there. The points made at the trial related to the idiosyncratic placing of the date below the signature which was a habit of the claimant. During the hearing before us a further point became available. On behalf of the claimant there were produced some documents one of which was signed by the claimant and it began Dear Sir/Madum. Odd it was said that the same way of spelling Madum should appear in both letters. Since the claimant was not giving evidence before us and thus had no chance to deal with the point it would be wrong to make too much of this last point. The fact remains that in relation to this document there was no fresh evidence of any value as compared to the evidence available at the trial. Once again it also provides absolutely no excuse for any delay in bringing an appeal.
Lady Justice Hallett :
Lord Justice Toulson :