The director of a high street pizza franchise who failed to keep adequate accounting records or pay over £140,000 of VAT due to HMRC has been disqualified from being a company director for seven years following an investigation by the Insolvency Service.

Ranjit Johal ran Bosif Ltd, a Papa John's takeaway pizza outlet in Lincoln city centre, entered creditors' voluntary liquidation in March 2012 owing creditors £217,414, of which £142,376 was unpaid VAT.

Johal was prosecuted by HMRC in June 2012 for failing to provide a financial bond for Bosif Ltd as required by HMRC's rules, following the previous failure of another company he had run from the same premises and which also had not paid VAT to HMRC.

The Insolvency Service investigation found that this pattern had been repeated in the case of Bosif Ltd and, in addition, the company's books and records did not sufficiently account for over £600,000 of sales and cash withdrawals.

Robert Clarke, head of insolvent investigations north, which is part of the Insolvency Service said: 'When directors of a failed company show no evidence of learning from the previous failure by repeating the same actions, their conduct will be investigated closely by the Insolvency Service.

Companies, especially those based in a largely cash-based business, should ensure that their records are sufficient to show how money has been used. Directors of companies that fail to do this will face disqualification for a considerable period of time.'