Ocorian Trustee (UK) Limited & Anor v Babu Haridas Chandarana & Ors

Facts

The Second Claimant, Cronus Finance Limited (now in administration), entered into a series of transaction documents on 27 October 2025 with Market Financial Solutions Ltd (MFS), a bridging loan lender and specialist property finance servicer. Those documents authorised MFS to cause payments from a bank account in Cronus's name, the Loan Disbursement Account, for the specific purpose of funding the origination and acquisition of mortgage loans. On 18 November 2025 MFS caused five payments totalling £6,370,878 to be made from that account to the client account of Sriharans Solicitors, a firm designated by the transaction documents, to be applied for that specified purpose and returned if it failed; Sriharans accordingly held the funds on Quistclose trust. The transactions did not proceed and the funds were not returned. Instead, on 23 December 2025, Sriharans paid them to an MFS bridging account with Lloyds Bank, a breach of trust after which MFS held the funds on constructive trust. The same day MFS made onward payments totalling £9,070,220 to twelve bank accounts in the names of the fifteen Defendants, accompanied by an email saying it had decided to "return your investment". MFS entered administration on 25 February 2026 amid evidence of fraud by its director Mr Raja and a shortfall of about £1.3 billion. The First Claimant, Ocorian Trustee (UK) Limited, was Security Agent and assignee of Cronus's rights. Stacey J granted an interim proprietary injunction without notice on 9 April 2026; this was the return date hearing.