The embattled national firm Axiom Ince is pursuing its former managing director through the courts after securing a freezing order against him.
Court documents seen by the Gazette state that Axiom Ince Limited has filed a claim for an alleged breach of fiduciary duty against Pragnesh Modhwadia. A preliminary hearing is due to take place next week.
Meanwhile, the firm has been granted an emergency freezing order worth around £57m in relation to Modhwadia’s assets which prevents him from accessing those funds.
The solicitor, who founded predecessor firm Axiom Stone Solicitors, was made subject to intervention by the SRA last month on the basis of suspected dishonesty and a failure to comply with Solicitors Act rules. The regulator’s action against Modhwadia and fellow directors Shyam Mistry and Idnan Liaqat effectively prevents them from practising as solicitors until further notice.
In a statement, Axiom Ince said that Modhwadia’s intervention was related to the ‘misappropriation of sums of money’.
The firm added: ‘We are working closely with the SRA to address the situation. We can confirm that Axiom Ince Limited applied to the High Court and have obtained a freezing injunction against Pragnesh Modhwadia.’
Timur Rustem, senior solicitor of London firm Rustem Guardian Solicitors, which is representing Modhwadia, said: ‘Our client is fully engaging with both the regulator and individual solicitors acting on behalf of the company. He is the owner and is fully engaged to providing information and documentation as and when required. His major concerns are for his employees, the clients and the company.’
It is understood that Modhwadia has not yet pursued a High Court challenge to his intervention, although that option is available to him.
He was a figurehead for Axiom Ince when it bought Ince Group and Plexus Law earlier this year in pre-pack administration deals. As part of the authorisation process for both acquisitions, he will have been approved as manager by the SRA.
