The High Court has sanctioned the sale of two properties bought through national firm Axiom Ince, as the mop-up job from the business’s demise continues.
Mr Justice Trower, sitting in the Rolls Building, yesterday approved an application to vary the existing freezing injunction on former managing partner Pragnesh Modhwadia to allow the sale of two properties bought in his name or through companies associated with him.
Axiom Ince was a national firm that grew significantly last year through the acquisitions of Ince & Co and Plexus Legal, before it was shut down in October by the Solicitors Regulation Authority after administrators were appointed. As well as law firm acquisitions, client money was used to buy and renovate more than a dozen properties in total.
The two properties subject to yesterday’s hearing are located at 128-136 (Equity House) (pictured) and 19-21 High Street, Edgware. Court papers showed they were bought in October 2021 and April 2022 respectively and charged to Mizrahi Tefahot Bank.
Following default on repayment, receivers were appointed by the bank last September before the freezing injunction was made against Modhwadia by Axiom Ince Limited, forbidding him from dealing with or disposing of any of his assets valued up to £64m. Those assets were stated to include several properties including the two in Edgware.
The court heard that last week, the intended purchaser of Equity House raised concerns about whether the proposed sale would be in breach of the injunctions, prompting the receivers to apply for a variation. Undertakings were given by the receivers to the solicitors representing Axiom Ince and they did not object to the application. Solicitors acting for Modhwadia also did not object and were not present at the hearing.
Meanwhile, also in the Rolls Building, a final bankruptcy order was made against Modhwadia.
Jim Varley, partner at Devonshires who represents the administrators of Axiom Ince, said: ‘The bankruptcy of Pragnesh Modhwadia is a significant step in this ongoing saga. Hundreds of clients of Axiom Ince lost large sums of money which has deeply affected their lives. While the bankruptcy order against Pragnesh Modhwadia will not of itself bring their money back, we hope it offers them some comfort that action is being taken.’
The Legal Services Board, the oversight regulator, launched an independent investigation to look into the SRA’s response to what was happening at Axiom Ince. A report was due this spring but has yet to be published.
Modhwadia was suspended by the SRA last August on suspicion of dishonesty and that order remains in place.
