Kenway Investments & Anor v Teamda Developments & Ors

The case involved a dispute between Kenway Investments and Teamda Developments, along with other parties, concerning the nature of their relationship and the terms of loans made to their joint venture. The court was required to determine whether the relationship between the parties was that of a partnership and, if so, how the amounts owing should be calculated. The central issue was whether the fiduciary agent's conduct warranted the taking of accounts, particularly in light of the potential loss of capital. Additionally, the court had to consider whether orders for repayment of the loans should be made before the taking of accounts and ascertainment of the extent of any loss, referencing the rule in Cherry v Boultbee.

The court found that the relationship between the parties was indeed a partnership, and as such, the fiduciary agent owed duties to the other partners. The court held that the conduct of the fiduciary agent did warrant the taking of accounts, especially given the risk of capital loss. The court emphasised the importance of the rule in Cherry v Boultbee, which allows for immediate orders for repayment when there is a likelihood of capital loss and the fiduciary agent's conduct is questionable. Consequently, the court ruled that orders for repayment should be made before the taking of accounts and the ascertainment of the loss, to prevent further dissipation of the partnership's assets.

In summary, the court held that the parties were in a partnership relationship and that the fiduciary agent's conduct justified the immediate taking of accounts. The court ordered the fiduciary agent to repay the loans before any further accounting was conducted, to protect the partnership's assets from potential loss. This decision underscored the importance of fiduciary duties in partnership arrangements and the need to safeguard against capital loss where necessary.