Balbinder Singh Battu v Reflect Canal House Limited & Ors

Facts

The claimant, Balbinder Singh Battu, invested in a residential property development in Southampton. He had first lent money to Canal Walk Developments Ltd ("CWD"), which owned the site, advancing some £597,000 in 12 tranches between January 2022 and October 2023 against a loan note, debenture and charge ranking behind that of MSP Capital Limited, the primary lender. When CWD could not complete the development, the claimant was introduced to the third and fourth respondents and a joint venture was discussed: the claimant would put in £400,000 of new money to the first respondent, half as loan and half as equity, and the £600,000 already advanced to CWD would be preserved as a director's loan. Heads of terms were exchanged in February 2024, and on 9 May 2024 the claimant, the third and fourth respondents and the first respondent entered into a written agreement and a deed of trust under which the third and fourth respondents held 50% of the shares on trust for him. No shares were ever transferred and he was never appointed a director. After the property was sold to Southampton City Council for £3.9 million in April 2026, funds were moved out of the first respondent's accounts, the first respondent was renamed and a new company took its former name. The claimant obtained a domestic freezing order from HHJ Jarman KC on 5 June 2026, continued by HHJ Hodge KC on 29 June 2026.