The disqualification of Naushad Khan of NK Bros Limited, trading as East India Restaurant, follows an investigation by the Insolvency Service’s Insolvent Investigations Team.

On 29 January 2016, Mr Khan signed a disqualification undertaking which bans him from being a company director and from being involved in the management of a limited company in any way for six years from 23 February 2016.

The business, an Indian restaurant and take away, went into liquidation on 13 January 2015 owing £43,555 to creditors.

The matters of unfitness which resulted in the undertaking were:

• Mr Khan failed to ensure that NK Bros Limited complied with immigration law resulting in the employment of three illegal workers

• following a visit from Home Office Immigration Officers on 11 June 2014, during which this breach was discovered, the company was fined a penalty of £30,000 by Home Office Immigration and Enforcement (HOIE)

• the company raised objections but these were rejected by HOIE and the fine remained in place

• the company made no payment to HOIE and ceased trading on 3 October 2014

Commenting on the disqualification, Mark Bruce, Chief Examiner for Insolvent Investigations South at the Insolvency Service, said:

This director sought an unfair advantage over their competitors by employing individuals who did not have the right to work in the UK.

The Insolvency Service rigorously investigates directors who breach employment and immigration legislation and this ban should act as a warning to other employers who are flouting the law. Directors who also seek to obtain commercial advantage over their competitors show a total disregard for the business community generally.

Notes to Editors

NK Bros Limited (CRO No. 07080479) was incorporated on 18 November 2009 and went into creditors’ voluntary liquidation on 13 January 2015. Its registered office was at 51 (Basement) Fashion Street, London E1 6PX.

Naushad Khan is of Surbiton and his date of birth is 29 December 1972.

A disqualification order has the effect that without specific permission of a court, a person with a disqualification cannot:

• act as a director of a company

• take part, directly or indirectly, in the promotion, formation or management of a company or limited liability partnership

• be a receiver of a company’s property

In addition that person cannot act as an insolvency practitioner and there are many other restrictions are placed on disqualified directors by other regulations.

Disqualification undertakings are the administrative equivalent of a disqualification order but do not involve court proceedings.

Further information on director disqualifications and restrictions is available.

The Insolvency Service administers the insolvency regime, investigating all compulsory liquidations and individual insolvencies (bankruptcies) through the Official Receiver to establish why they became insolvent. It may also use powers under the Companies Act 1985 to conduct confidential fact-finding investigations into the activities of live limited companies in the UK. In addition, the agency authorises and regulates the insolvency profession, deals with disqualification of directors in corporate failures, assesses and pays statutory entitlement to redundancy payments when an employer cannot or will not pay employees, provides banking and investment services for bankruptcy and liquidation estate funds and advises ministers and other government departments on insolvency law and practice.

Further information about the work of the Insolvency Service, and how to complain about financial misconduct, is available.

All public enquiries concerning the affairs of the company should be made to:

The Official Receiver, Public Interest Unit (South), The Insolvency Service, 2nd Floor, 4 Abbey Orchard Street, London WC1B 3SS.

Tel: 020 7637 6404 Email: piu.or@insolvency.gsi.gov.uk.

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