JSC BTA Bank v Ablyazov & Ors

JSC BTA Bank v Ablyazov & Ors

The application to appoint a receiver is not 'proceedings' within Article 22.2 of the Judgments Regulation but an application within ongoing proceedings where the court already has jurisdiction. It is just and convenient to appoint a receiver to ensure Usarel is represented at trial, and there is no real risk of prejudice or conflict with Cypriot proceedings.

Parties
Claimant: JSC BTA Bank; Defendants: Mukhtar Ablyazov and others including Usarel Investments Limited; Applicants: Vetabet Holdings Limited, Med Consulting Limited, Evoru Holdings Limited, Dube Overseas Limited, Polatia Holdings Limited, Liberati Worldwide Inc
Jurisdiction
England and Wales
Judgment Date
08 October 2012
Procedural Posture
Commercial Court Application Within Ongoing Fraud Proceedings / Pre Trial Application for Appointment of Receiver
Outcome
Application granted
Legal Topics
Appointment of Receiver, Jurisdiction Under Judgments Regulation, Representation of Companies in Litigation
Company Law Civil Procedure Conflict of Laws Appointment of Receiver Jurisdiction Under Judgments Regulation Representation of Companies in Litigation

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Parties

JSC BTA Bank

Claimant

Mukhtar Ablyazov and others including Usarel Investments Limited

Defendants

Vetabet Holdings Limited, Med Consulting Limited, Evoru Holdings Limited, Dube Overseas Limited, Polatia Holdings Limited, Liberati Worldwide Inc

Applicants

Procedural Posture

Commercial Court Application Within Ongoing Fraud Proceedings / Pre Trial Application for Appointment of Receiver

Legal Issues

  1. 1 Whether the English court has jurisdiction to appoint a receiver for a Cypriot company under Article 22 of the Judgments Regulation
  2. 2 Whether it is just and convenient to appoint a receiver to ensure representation of Usarel Investments Limited at trial
  3. 3 Whether the application should have been made in Cyprus

Ratio Decidendi

The application to appoint a receiver is not 'proceedings' within Article 22.2 of the Judgments Regulation but an application within ongoing proceedings where the court already has jurisdiction. It is just and convenient to appoint a receiver to ensure Usarel is represented at trial, and there is no real risk of prejudice or conflict with Cypriot proceedings.

Court Disposition

Application granted

Orders

  • David Rubin of David Rubin & Partners LLP appointed as Litigation Receiver of Usarel Investments Limited for the purpose of defending the claim brought by the Bank against Usarel.
  • Applicants to pay £25,000 into court within 7 days as security for undertakings.