[2025] UKUT 274 (LC)

In this reference we are asked to determine the compensation payable to the claimants, Mr Zafar Quyoom, his wife, Mrs Amina Quyoom, and their company Jap Euro North East Ltd, following the compulsory acquisition of land and buildings at Commercial Street in Middlesbrough from which Mr Quyoom and the company operated a successful business dismantling end of life vehicles (“ELVs”). Although the claimants also occupied another site close to the acquired land, it is agreed that the consequence of the acquisition of their Commercial Street premises (“the Site”) was that the business could not continue.

The Site was acquired pursuant to The Council of Middlesbrough (Middlehaven) Compulsory Purchase Order 2014 which was confirmed in September 2015. A General Vesting Declaration was executed by the Council in December 2017, and it took possession of the Site on 29 March 2018, which is agreed to be the appropriate valuation date.

The parties have agreed the compensation payable for the Site itself under rule 2 of section 5 of the Land Compensation Act 1961 together with various professional fees incurred by the claimants as a result of the acquisition. It is also agreed that the claimants should be compensated under rule 6 of section 5 on the basis that the business was extinguished on the valuation date. The value of the business on that date is not agreed, nor is it agreed whether additional compensation should be paid under rule 6 because Mr Quyoom, who was the sole manager of the business, devoted time to dealing with the acquisition.

Evidence was given during the hearing by Mr Quyoom, by Mr Sam Gilmore, who is an officer of the Council, and by Mr Harry Seddon, formerly an employee of Cerberus Asset Management, and Mr Matthew Bateman, a director of Cerberus. Expert evidence on the value of the claimants’ stock was given by Mr Richard Storry MRICS and by Mr Matthew Parker MRICS, and on the value of the claimants’ business by Mr Nicholas Parton FCA and Mr Gavin Pearson FICAEW.

The claimants were represented at the hearing byPaul Stinchcombe KC and the respondent by Vincent Fraser KC. We are grateful to all who participated for their assistance.