Recycling group faces uncertain future

Capital Green Recycling (CGR) has given notice of its intention to appoint administrators after a turbulent year for the firm.

The Birmingham-based company had been in the High Court in April after it alleged it had wrongly paid more for its purchase of One Stop Recycling than the company was worth.

CGR was formed by Shyam Chhabria and his son Nirmal Chhabria to acquire 80% of the scrap metal business, owned by Steven and Amy Bird for £2.85m. The two companies met when Nirmal had worked for steel giant Liberty Steel, which was once interested in buying One Stop Recycling.

CGR claimed for damages for breach of warranty and for fraudulent or negligent misrepresentation.

His Honour Judge Keyser said that whilst Nirmal had “impressive qualifications and experience he is capable of great charm” but “it also indicates that he purposely uses this charm to further his own ends and that he is manipulative and untrustworthy.”

It was also said that Nirmal’s evidence was “full of bluster and evasion were statements concerning cash-flow constraints and the promise of immediate injection of cash after completion”.

HHJ Keyser concluded: “My assessment of the evidence as a whole leads me to the view that Nirmal has deliberately tried to paint a false picture of being misled into buying a failing business which he had believed to be healthy.

“In fact, he received very detailed financial information concerning OSR because he already had extensive knowledge of the business through his earlier involvement while acting for Liberty and because Amy [Bird] had given him everything that he asked for, and had been so in thrall to him that she had done so with a lack of prudence.”

CGR’s representatives when giving notice to appoint administrators have been contacted for comment.