The director of a business improvement company has spoken out about a court ruling which he said proves the 'validity' of a business improvement company after 33 traders lost their battle in court.

Yesterday, deputy district judge Tom King handed out 33 liability orders to business owners in Leytonstone, ordering them to pay the annual levy to the E11 Bid Company, formed in 2008.

Although stating the company seemed ‘chaotic’ judge King stated he had no jurisdiction over arguments brought by traders at Waltham Forest Magistrates Court, yesterday.

The main arguments set out by the group were they were treated unfairly and had no proof of where their money had been spent due to financial mismanagement and debts rising to £80,000.

They also questioned the validity of the company and the ballot which saw it voted in for a second term.

In 2013 the council investigated the Bid with the view to closing it down however found in favour of the directors and began collecting levy payments again.

Speaking about the ruling Fawad Shaikh, operations director, said the result “reinforces the validity” of the company.

“Today's victory proves that the mechanisms in place are valid and that all businesses in the area must pay the levy. Those businesses that try and get a free ride will be legally prosecuted,” he said.

“Since the beginning of its second term, the Bid Company had dealt with an 18-month delay in the billing process and a number of false accusations that have had adverse media coverage towards the reputation of the company.

“A few businesses have been proactively campaigning and advising fellow members to not pay their levy.

“The E11 Bid Company has been working with the London Borough of Waltham Forest and their appointed auditors to demonstrate the continuing viability of the Company. The E11 Bid Company is an independent private company with yearly accounts submitted and independently audited, funded by the private sector, run by and for Leytonstone businesses.

“E11 Bid is, once again, going above and beyond its statutory duties to clear its name from a number of regurgitated false and slanderous accusations and concocted arguments.”

A number of projects are now up and running through the Bid Company including monitoring of extra CCTV.