Closed down national firm Axiom Ince was today granted two applications in ongoing litigation against its former managing partner over £64m of client money. The application hearing before Mrs Justice Bacon in the Rolls Building was told that Pragnesh Modhwadia had instructed new solicitors just days previously.
The judge granted Axiom Ince’s application for the continuation of the proprietary injunctions made against Modhwadia’s companies and his brother’s companies.
The High Court also granted an application, which was not opposed, for relief from sanctions and a retrospective extension of the time limit to serve the amended claim form after a ‘technical’ error meant Modhwadia’s companies were not served by the 19 September deadline.
The court heard that when solicitors spotted the error, an amended claim form was sent by courier to the business’s registered address, which they no longer appeared to occupy.
The judge said: ‘There is, on almost all aspects, agreement by both parties that the order should continue.'
The court heard that a request for liberty to apply to vary the order was due to Modhwadia instructing new solicitors for himself and his companies, which were not represented at the previous hearing.
The judge said: ‘Those solicitors are only now getting their feet under the table. They say they may, in going through the paperwork they have only just received, come across a matter which may make them apply to vary the order.'
The judge said Modhwadia, having been aware of the case since late August, had ‘over a month to put his house in order…and instruct solicitors on behalf of himself and his companies should he choose to do so and to make all necessary enquiries’. She added: 'His choice not to instruct solicitors on behalf of the companies until yesterday is a matter within his control.'
She noted Modhwadia's ‘reasonable concession’ that the freezing order should be continue but added ‘the fact they have consented to that should not mean they are entitled to extra time in which to come back to court’.
She said: ‘The time for them to address any matter which might necessitate a variation of the freezing order is today.’ She found the defendants had had ‘some weeks to seek appropriate legal advice and to request themselves of all relevant matters which relate to the continuation of the freezing order.’
She added: ‘I am satisfied those defendants have had adequate time notwithstanding their late decision to instruct solicitors. There will however be the usual opportunity for the companies to return to court if there has been a material change to circumstances.’
The Solicitors Regulation Authority announced on Tuesday that it had intervened into the practice of Axiom Ince, closing the business with immediate effect.
