THE liquidators of Carrian Holdings Limited (CHL) are seeking the return of two London properties, and rent amounting to GBP280,000 (HK$3.27 million), which was allegedly used to pay George Tan's legal expenses, the High Court has heard. Ian Glick QC, for the liquidators of CHL, submitted that both properties were bought in 1982 for a total of GBP1.2 million and the money came from CHL ''in what was a clear and fraudulent breach of fiduciary duty by the directors of CHL in alienating thecompany's assets''. Mr Justice Godfrey was told that resources were siphoned off to buy a flat and a house, which were put in the name of two Hongkong companies unconnected with CHL. They were Crestflame Estates Limited and Lowriver Estates Limited. The current ownership of the two companies was obscure as they were held through chains of nominee and Liberian companies. But Mr Glick said, in reality, the beneficial owner of the companies had probably been Tan throughout. ''He certainly controlled their fate both after the companies nominally belonged to his wife [Helen Tan] and after they nominally belonged to his mother-in-law, Ms Leong; and he appears to have had the benefit of the profits the properties have generated,'' counsel said. The court heard that a scheme to put the properties into a network of Hongkong and Liberian companies was devised by John Marshall (then a director of CHL and managing director of the Carrian group) and the group's solicitors, Deacons. Mr Glick said there were two objects for this structure - one legitimate, to shelter the owners from tax and estate duty; the other, not legitimate, to conceal the fact they were to be bought for Tan or his wife with CHL's money. After the properties were bought they were rented out and Rodney Bell, the finance director of the Carrian group, kept an eye on them. This task was passed to Tan's brother-in-law, David Kao, who continued to supervise the properties and run Crestflame and Lowriver after Carrian collapsed in late 1983. However, after that, Tan arranged for management to be handed over to London property management company Chestertons (now Prudential Property Services), which still runs it. The rental profits from the two properties from 1982 to July 1990 was a total of GBP280,234. Since the summer of 1990, the profits have been going to a receiver. The defendants claim that Tan bought the properties at the request of the Kao family and CHL was merely used as a sort of bank and Tan's father-in-law reimbursed the money with a $10-million cheque. Mr Glick submitted that this story was unsupported. The hearing continues.