UBS embarks on its £11m legal fight against director of collapsed commodities trader
UBS Switzerland’s £11m lawsuit against the director of a collapsed London-based commodities trader goes to trial.
Anil Kumar was the director of London-based Vincom Commodities, a company that was placed into compulsory liquidation on 24 January 2018.
The Swiss bank alleges that Kumar acted in breach of duty to Vincom by allowing it to enter into various transactions with companies under the control of his family members which caused the company losses of about $7.7m.
The bank also alleges that he is in breach of duty for paying away sums totalling $5.6m to a company controlled and partially owned by his brother after the winding up petition was issued.
UBS launched its breach of fiduciary duty lawsuit to the High Court back in June 2021.
In the meantime, Kumar was hit with worldwide freezing, along with the courts of the Dubai International Financial Centre preventing him from removing assets up to the value of £12.27m from the UAE.
He sought permission from the High Court last July to sell his two properties in Dubai, as he wanted the sale proceeds to be deposited in his NatWest account in London in order to fund his legal expenses.
UBS opposed his application, leading the court to hear evidence on his “expensive” lifestyle which included living at an address between Marylebone and Hyde Park, driving a Lexus with personalised number plates and dining at London restaurants.
His application was dismissed as the court said he did not satisfying the court that there is no other available source of funds to pay his legal expenses.
UBS’s case against him now goes to trial starting Monday in front of His Honour Judge Parfitt, who is sitting as a judge of the High Court. The case is being held at court nine at the Rolls Building.
The Swiss bank instructed the London office of US law firm Reed Smith, while Kumar seems to have opted for an advocate.