Commercial Fraud
Authentic Builders General Hardware Ltd v Harnarine
Authentic Builders General Hardware 2021 Ltd v Harnarine, High Court of Trinidad and Tobago, interim orders 2021 and 2022.
Matter overview
Authentic Builders General Hardware is a family hardware business in Arima that became the subject of a falling-out within the family that ran it. In 2021 a successor company and two of its directors sued Harry Harnarine, the former president of the Hindu Credit Union, and three members of his family. They alleged that the business's property had been misappropriated and its takings diverted.
An accountant retained by the claimants reported irregular dealings and a high possibility of fraud, and part of the evidence went to the Fraud Squad. The civil claim asked the High Court to act while assets and records could still be secured.
Strategic approach
Justin Phelps appeared for the claimants, instructed by Mr Gary Hannays. The case turned on speed: interim relief had to hold the business's assets and records in place while the claim was fought.
On 29 June 2021 Mr Justice Robin Mohammed granted a freezing injunction over the operations of the business at the centre of the claim. A year later the Harnarines applied to have it discharged.
A freezing order is tested twice: once when it is granted, and again when it is attacked. The second test is the one that counts.
Result
On 2 June 2022 the court refused to discharge the injunction. It was varied only to let the store trade again, on condition that proper documentary records were kept; the protection at the heart of the order stayed intact.
The substantive claim remains a matter for the High Court, and the allegations remain allegations until it rules. What the interim orders preserved was the ability to have that trial at all; few cases show the value of early advice more plainly.
