Read on for the details of this case, along with the Liquidators comments.
Liquidators Comments
Overview of the Case
Rajinder Singh Matharu (“Mr Matharu”) caused Kingsbridge Services Ltd (“Kingsbridge”) to apply for a Bounce Back Loan (“BBL”) of £50,000 but failed to provide adequate evidence to show that these funds were used for the economic benefit of Kingsbridge after the entirety was transferred to his account the following day, which is in breach of the BBL terms and conditions.
In that:
- The BBL Scheme terms and conditions state that BBL funds are to be used to provide economic benefit to the business and that it will be used wholly for business purposes and not personal purposes.
- On 08 January 2021, Mr Matharu applied for a BBL of £50,000 on behalf of Kingsbridge declaring that its turnover for the calendar year 2019 was £210,000. Kingsbridge received the BBL funds of £50,000 on 13 January 2021.
- On 14 January 2021, £50,000 was transferred to an account belonging to Mr Matharu.
- Mr Matharu advised that the BBL funds he received were paid from his account to a company in Kenya to design and develop an online and mobile platform for Kingsbridge.
- The company in Kenya provides construction equipment for hire in Kenya and did not offer services to design online systems, contrary to the evidence provided by Mr Matharu.
- Total liabilities at liquidation amount to £62,187 of which £50,000 relates to the amount owed in respect of the BBL.
