Case No. FD05D04818

9.With the receivership order reinstated by the Court of Appeal in December 2019 and with the process of realising Setubal’s assets apparently underway, on 11 December 2020 Ms Behbehani issued a claim against the applicants by which she sought an order that the Former Receivers transfer to her the Setubal shares for nil consideration. By this time, the costs incurred by the applicants in relation to their time in office were estimated to be approaching £400,000. It appears to be accepted without challenge that, subject only to the assessment of the quantum of those costs, nothing had been paid on account in what the Former Receivers allege to be a clear breach of the terms of their appointment and retainer.10.That application came before me on 20 May 2021. By that stage Ms Behbehani had advertised an intention to sue the applicants in respect of their alleged professional negligence. The claim was then unparticularised. She was represented on that occasion by experienced counsel, Mr Charles, instructed by HA Law. Following discussion between the parties, I was told by Mr Charles that his client no longer intended to pursue her application for a formal transfer of the Setubal shares. That position was reflected by a formal recital in the order which I approved at the conclusion of that hearing. With no clear formulation of how the advertised claim in negligence was being formulated, I acceded to the request advanced by Mr Chichester-Clark on behalf of the applicants that I should make an ‘unless’ order so as to crystallise all outstanding matters and issues between them. I provided in my order that the Former Receivers would be released from all liability regarding their conduct of the Receivership unless Ms Behbehani filed and served particulars or points of claim against them within three months, i.e. by 20 August 2021. At the same time I granted Ms Behbehani’s application to appoint a new Receiver, Mr Darren Edwards, in place of the applicants since it was clear that the professional relationship between the parties had become unworkable. Since it was agreed that the Former Receivers should be entitled to exercise a formal lien over the Setubal shares in respect of their outstanding costs and expenses, I ordered that, prior to any formal transfer of the shares, Mr Edwards in his capacity as the New Receiver must provide his professional predecessors with a charge over the shares up to a maximum value of £400,000. He was also required to give 28 days’ formal notice of any intention on his part, or instruction from Ms Behbehani, to transfer the shares. On that occasion I accepted Ms Behbehani’s undertaking to the court to pay forthwith a sum equivalent to the value of any assets she received or derived from the transfer of the shares up to a value of £400,000.11.I made a costs order against Ms Behbehani by which she was to pay the costs of the Former Receivers on an indemnity basis with an immediate payment of £40,000 on account of those costs by 4 June 2021.