Mars Capital Finance Ltd v Hussain & Ors [2021] EWHC 2416 (Ch) (06 September 2021)

Mars Capital Finance Ltd v Hussain & Ors [2021] EWHC 2416 (Ch) (06 September 2021)

The transfers of the loans and mortgages from the Popular Bank to the Bank of Cyprus under Decree 104, and subsequently to Mars Capital, were valid and effective under Cypriot and English law. The defendants, as debtors, have no standing to challenge the Cypriot resolution measures, and all statutory requirements for assignment and registration were met. Mars Capital is entitled to enforce the loans and mortgages.

Citation
[2021] EWHC 2416 (Ch)
Parties
Claimant: Mars Capital Finance Limited; First Defendant: Mr Zahid Hussain; Second Defendant: Mr Costas Papachristoforou; Third Defendant: Mrs Kyriacoulla Papachristoforou; Fourth Defendant: Mr Demitrakis Tsolakides; Fifth Defendant: Mrs Sophia Ktori
Jurisdiction
England and Wales
Judgment Date
06 September 2021
Procedural Posture
Civil (chancery Division) / Judgment After Remote Trial
Outcome
Claim allowed; counterclaim dismissed
Legal Topics
Assignment of Loans and Mortgages, Validity of Foreign Reorganisation Measures, Transfer of Security Interests, Effect of EU Insolvency Directives, Non Justiciability of Foreign Acts of State
Banking and Finance Property Law Insolvency Private International Law Assignment of Loans and Mortgages Validity of Foreign Reorganisation Measures Transfer of Security Interests Effect of EU Insolvency Directives +1 more

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Parties

Mars Capital Finance Limited

Claimant

Mr Zahid Hussain

First Defendant

Mr Costas Papachristoforou

Second Defendant

Mrs Kyriacoulla Papachristoforou

Third Defendant

Mr Demitrakis Tsolakides

Fourth Defendant

Mrs Sophia Ktori

Fifth Defendant

Procedural Posture

Civil (chancery Division) / Judgment After Remote Trial

Legal Issues

  1. 1 Whether Mars Capital validly acquired legal title to the loans and mortgages from the Popular Bank via the Bank of Cyprus
  2. 2 Whether the transfers under Cypriot law and decrees were effective and enforceable in England
  3. 3 Whether the defendants can challenge the validity of Cypriot resolution measures in English courts

Ratio Decidendi

The transfers of the loans and mortgages from the Popular Bank to the Bank of Cyprus under Decree 104, and subsequently to Mars Capital, were valid and effective under Cypriot and English law. The defendants, as debtors, have no standing to challenge the Cypriot resolution measures, and all statutory requirements for assignment and registration were met. Mars Capital is entitled to enforce the loans and mortgages.

Court Disposition

Claim allowed; counterclaim dismissed

Orders

  • Declaration that Mars Capital validly acquired legal title to the loans and mortgages in question
  • Mars Capital entitled to enforce the loans and mortgages, including appointment of receivers