Tariq Khuja & Anor v Cherwell District Council

Facts

OX1 Limited is the freeholder of The Blarney Stone in Banbury, a building with three flats above commercial premises. The company let the flats through a managing agent. Mr Tariq Khuja is its sole director, and he said he was not directly involved in the day-to-day management of the property. Cherwell District Council inspected the property in August 2023, and urgent work began at once to deal with fire hazards. In February 2024 the council served notices of intention on both the company and Mr Khuja. The notices alleged breaches of the Licensing and Management of Houses in Multiple Occupation (Additional Provisions) (England) Regulations 2007, on the footing that the building was a house in multiple occupation within the Housing Act 2004. The notice to Mr Khuja relied on section 251 of the Housing Act 2004. It said the offences were attributable to his failure to take reasonable steps to prevent them. On 11 July 2024 the council imposed a penalty of £24,975 on each of them. The First-tier Tribunal found that the property was a house in multiple occupation and that the offence had been committed. It held that Mr Khuja had consented to the company's breaches because he was the sole director and shareholder and the directing mind of the company. It reduced each penalty to £11,000. The Upper Tribunal gave Mr Khuja permission to appeal. It refused the company permission to appeal against its own penalty.