JSC BTA Bank v Ablyazov & Ors

JSC BTA Bank v Ablyazov & Ors

The Court of Appeal held that there was a good arguable case that Mr Ablyazov remained the beneficial owner of Dregon Land, justifying the trial of that issue. The court had jurisdiction to order the trial of the beneficial ownership issue as raised by the applicants' application to vary the freezing and receivership orders. However, the judge's order was set aside to the extent it purported to allow the Bank to pursue claims for collusive breach of the orders without proper originating process.

Parties
Claimant/respondent: JSC BTA Bank; Defendants: Mukhtar Ablyazov & 16 Ors; Third Party/appellant: Lapointec Ventures Limited; Third Party/appellant: Limia Holdings Limited; Third Party/appellant: Dregon Land Limited
Jurisdiction
England and Wales
Judgment Date
14 May 2014
Procedural Posture
Civil Appeal / Appeal From High Court Judgment on Variation of Freezing and Receivership Orders
Outcome
Appeal allowed in part; paragraphs 1 and 2b of the judge's order set aside; otherwise dismissed.
Legal Topics
Freezing Orders, Receivership, Beneficial Ownership, Jurisdiction, Chabra Orders
Civil Procedure Asset Recovery Injunctions Freezing Orders Receivership Beneficial Ownership Jurisdiction Chabra Orders

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Parties

JSC BTA Bank

Claimant/respondent

Mukhtar Ablyazov & 16 Ors

Defendants

Lapointec Ventures Limited

Third Party/appellant

Limia Holdings Limited

Third Party/appellant

Dregon Land Limited

Third Party/appellant

Procedural Posture

Civil Appeal / Appeal From High Court Judgment on Variation of Freezing and Receivership Orders

Legal Issues

  1. 1 Whether there is a good arguable case that Dregon Land is beneficially owned or controlled by Mr Ablyazov and thus properly included in the freezing and receivership orders
  2. 2 Whether the court had jurisdiction to order the trial of the issue as to beneficial ownership
  3. 3 Whether the judge's order went beyond the scope of determining beneficial ownership by including collusion issues

Ratio Decidendi

The Court of Appeal held that there was a good arguable case that Mr Ablyazov remained the beneficial owner of Dregon Land, justifying the trial of that issue. The court had jurisdiction to order the trial of the beneficial ownership issue as raised by the applicants' application to vary the freezing and receivership orders. However, the judge's order was set aside to the extent it purported to allow the Bank to pursue claims for collusive breach of the orders without proper originating process.

Court Disposition

Appeal allowed in part; paragraphs 1 and 2b of the judge's order set aside; otherwise dismissed.

Orders

  • Paragraph 1 (dismissing the application) and paragraph 2b (collusion issue) of the judge's order are removed.
  • The issue to be tried is confined to the question of beneficial ownership of the shares in Dregon Land.