Letting agent closed down following investigation

16 Nov 2006 03:45 PM

A letting agent, which traded as Property Express, and its associated companies have been shut down following an investigation by the Companies Investigation Branch (CIB) of The Insolvency Service.

West End Property Development (Rentals) Limited ("Rentals") based in Maidenhead, Berkshire and its four associated companies claimed to provide a property rental and letting service. However, an investigation into the company's activities revealed that; the company directors provided false details about their status as company shareholders; the registered offices of the company was an area of bare land in West Bromwich, in the West Midlands; the company had failed to pay taxes, national insurance contributions and VAT and disputed amounts owed to tenants and landlords was in excess of in excess of £55,000.

CIB's investigation also revealed that West Property Development and its associated companies conducted their affairs in a dishonest manner, seriously lacking in commercial probity. The company failed to honour its contracts between landlords and tenants; incorrectly charged late fees for monthly rental payments; either refused to refund deposits in their entirety or made unwarranted deductions; despite money being collected from tenants, landlords complained that they had not been paid their rental income; and two directors failed to cooperate with the investigation.

The High Court, Mr Registrar Rawson commented that there was a "clear cut case in each case and there is no possible answer to the petitions. The evidence speaks for itself".

Notes to Editors
1. The petitions to wind up the company in the public interest were presented to the High Court on 7th September 2006 and the Official Receiver was appointed provisional liquidator. The petitions were presented following enquires conducted under Section 447 of the Companies Act 1985, and Section 124A of the Insolvency Act 1986. All companies were put into compulsory liquidation when the companies were wound up by the High Court on the 8th November 2006.

2. West End Property Development (Rentals) Limited ("Rentals") was associated to four other companies. The registered office of the companies was 103A High Street, Maidenhead, Berkshire SL6 1JX. Where a trading office is different to the registered office, those have been set out below. The associated companies were:
* West End Property Developments (Holdings) Limited ("Holdings"), * West End Properties Developments (Overseas) Limited ("Overseas"), and West End Property Developments (Sales) Limited ("Sales"), First Floor Offices, 18 Claypit Lane, West Bromwich, West Midlands, B70 9UN.
* Summit Properties Management Services Limited ("Summit"), 35 Firs Avenue London N11 3NE.
'Rentals' and 'Sales' traded under the name Property Express as letting and estate agents respectively.

3. Windsor and Eton Trading Standards received 68 complaints concerning the conduct of West End Property Development (Rentals) Limited ("Rentals").

4. The recorded company directors other than for Summit were Mr Abdulla and Mr Zadran. Ms Vivian Kelsey was a director of 'Summit'. Mr Philip Elkington-Martin, the former company secretary and Ms Kelsey both failed to co-operate with the investigation, which included the failure to provide company records when requested.

5. The Insolvency Service administers the insolvency regime investigating all compulsory liquidations and individual insolvencies (bankruptcies) through the official receiver, to establish why they became insolvent.

6. The Insolvency Service also carries out confidential enquiries on behalf of the Secretary of State for Trade and Industry, through Companies Investigation Branch. The Service also authorises and regulates the insolvency profession; deals with disqualification of directors in corporate failures; assesses and pays statutory entitlement to redundancy payments when an employer cannot or will not pay employees; provides banking and investment services for bankruptcy and liquidation estate funds; and advises ministers and other government departments on insolvency law and practice.

7. All public enquiries concerning the affairs of the company should be made to: The Official Receiver, Public Interest Unit, 21 Bloomsbury Street, London, WC1B 3SS, Tel No: 020 7637 1110. Email: piu.or@insolvency.gsi.gov.uk

Further information about the work of The Insolvency Service is available from www.insolvency.gov.uk