Lautoka lawyer appeals High Court ruling over Lautoka club funds

Lautoka lawyer Iftikhar Iqbal Khan has appealed a High Court ruling that ordered him to repay more than $100,000 after finding he had seriously breached his duties in handling proceeds from the sale of the Lautoka Sports and Social Club property.

Khan was the second defendant in a civil case brought by the club’s trustees against him and his former client, the Lautoka City Council.

The dispute arose from the judicial sale of the club’s Lautoka property in November 2001 to recover unpaid rates owed to the Council amounting to about $21,605.77 plus interest.

The property was sold for $261,000, with the proceeds paid into an account controlled by Khan, who was acting for the Council.

According to the trustees, the Council received only about $42,800 from the sale, while the remaining funds were not properly accounted for.

Khan said the balance was paid to Tavakece Tepola and that the payments were authorised by the club’s trustees.

In its ruling, the High Court found that about $100,688 was paid out through 19 cash cheques. The judge described the practice as irresponsible and lacking transparency, saying Khan should have used traceable payment methods and obtained court approval before distributing the funds.

The court found there was no evidence Khan had obtained approval for substantial deductions, including legal fees totalling $77,175.86.

The Council denied any involvement in the distribution of the sale proceeds and maintained it relied on Khan throughout the process. The court agreed the Council was not responsible for Khan’s actions, ruling that he acted in his professional capacity and was accountable to the court once he took control of the judicial sale proceeds.

The judge found Khan had seriously breached his duties by issuing cash cheques to an unidentified person who relied on false authority letters.

Khan was ordered to repay $100,688, together with two per cent interest from October 2001 until the date of judgment.

The court also awarded the plaintiffs $5000 in costs, payable by Khan.

The money is to be paid Chief Registrar’s account, with any person claiming entitlement required to apply for it. If no claim is made, the funds will be paid to the State.