Kudos 2024 Limited v Ravindra Karia & Ors

Facts

The petitioner, Kudos 2024 Limited, holds 50% of the shares in Chemilines Group Holdings Limited, the third respondent. The shares in Kudos belong to Jagdish Karia. The first respondent, Ravindra Karia (Ravi), is Jagdish's brother and held the other 50% until 30 October 2024, when he transferred them to 1918 Limited, owned by Ravi and his wife. The brothers are the only directors. The second respondent, Chemilines Limited, is wholly owned by the company and acts as its trading entity in pharmaceuticals and health and beauty products. The petition, issued on 28 November 2025 under section 994 of the Companies Act 2006, alleged that between December 2023 and July 2024 Ravi refused to allow an orderly cessation of Chemilines' loss-making trade, so that its assets were exhausted, and that he did so to thwart Jagdish rather than in good faith. It pleaded breaches of duty and unfairly prejudicial conduct, and sought compensation payable to the petitioner or, alternatively, to Chemilines or the company, together with permission to bring claims in their names. No defence had been filed. By application notice dated 8 January 2026, Ravi applied to strike out the petition or for summary judgment, contending that it was in substance a derivative claim under Part 11 of the Act and an abuse of process. The application was heard on 26 June 2026.