The SHEF and Mr Abbas challenged this decision - arguing that Guernsey's Royal Court had acted outside of its jurisdiction and that the decision should be set aside.

Appeal Judge, Her Honour Hazel Marshall KC Lieutenant Bailiff presided over a hearing on that claim last month and she agreed that the Deputy Bailiff's decision should be set aside.

Her Honour decided that the case had not met international requirements for a court to make a decision outside of its jurisdiction and that the costs should be paid by the Plaintiff (Barrett Hodgson Ltd) to the defendants (Mr M Abbas and the SHEF).

Pictured: The conclusion reached by Appeal Judge, Her Honour Hazel Marshall KC Lieutenant Bailiff.

The original case

The original case had centred around a transfer of shares in November 2016, but the fact it was heard in Guernsey was traced back to 1992 when BHL was incorporated in the island.

Neither Dr Mohammed Salim Habib - the wealthy university owner - nor his then wife - had any connections with the island and it was said in court that it was believed 'Guernsey was simply the jurisdiction of BHL’s incorporation, apparently chosen as a convenient or beneficial off-shore location'.

The court also heard that BHL’s incorporation in Guernsey was 'well before the days when pressure developed for a company to show some activity, or economic substance, in the jurisdiction of its incorporation'.

In the 1990s, Dr Habib was the sole beneficial shareholder of BHL through nominated companies. He and Mr Abbas were both directors of BHL by 2016 with Dr Habib the Chairman and having the casting vote at Board meetings.

Around the year 2000 Dr Habib married his second wife - Dr Afaq -  who was BHL's Business Development Manager and later a Director. She is now Chancellor of the university.

Pictured: Dr Habib and Dr Afaq are no longer married but remain closely linked through their work and personal lives.

In early 2016, the BHL board decided to make a gift to SHEF of BHL shares - with Dr Habib and Mr Abbas agreeing. Two years later, despite Dr Habib and Dr Aqal no longer being married, he made a gift of shares to her as well - “in consideration of natural love and affection”.

His adult children are said to have complained about both of these gifts claiming there was "undue pressure" against Dr Habib.

His children said they were concerned about his decision making, while accusing his second wife of being a "calculating woman" with whom "Mr Abbas has thrown in his lot". Both of whom denied those accusations. 

She also said that his children had expected to inherit larger fortunes from their father - who is still alive - and that they had "sought to take over his life and affairs for their own financial benefit".

The case was heard in Guernsey because the central claim was a 'breach of fiduciary duty made by a Guernsey company (BHL) against one of its directors, and that the other claims are consequential on this'.

Pictured: Barrett Hodgson Ltd is registered in Guernsey but neither the business nor its owner has any other links to the island.

While the Deputy Bailiff had previously agreed the case was entitled to be heard in Guernsey and decided upon, the appeal went the other way after the defence argued that 'none of the acts complained of took place in Guernsey; the Resolution was passed in Karachi (a fact which was not clear to the Deputy Bailiff when she made her decision); Mr Abbas has never visited Guernsey; Dr Habib, the 100% shareholder of the Plaintiff is a Pakistani national and at all relevant times resident in Pakistan, again with no apparent connection to Guernsey'.

In considering both sides, Her Honour said that this case disclosed a number of triable issues, which brought into question 'matters of the validity of the acts of directors/shareholders of a Guernsey company and hence of the company itself'. She however decided that there was not a 'sufficiently real and significant link with Guernsey to be properly justiciable before this Court'.

Her Honour decided that 'Guernsey is emphatically not “clearly and distinctly” the most appropriate forum for such issues to be tried; that forum is Pakistan'.