JSC BTA Bank v Ablyazov & Ors

JSC BTA Bank v Ablyazov & Ors

There is strong ground for believing that the companies funding Mr Ablyazov's legal expenses are his own creatures or conduits, and good reason to believe Green Life may be as well. The court has jurisdiction to order disclosure of the identity of the ultimate beneficial owner and the source of funds of Green Life to ensure the effectiveness of the freezing order and prevent its circumvention. The potential prejudice to Mr Ablyazov does not outweigh the need for disclosure, which will be subject to safeguards. The order is made to the Bank's UK solicitors only, with further dissemination subject to court permission.

Parties
Claimant: JSC BTA Bank; First Defendant: Mukhtar Ablyazov; Defendants: 16 Other Defendants
Jurisdiction
England and Wales
Judgment Date
26 October 2011
Procedural Posture
Commercial Court Application (interlocutory) / Ruling on Application for Disclosure of Source of Legal Funding
Outcome
Application granted (subject to conditions)
Legal Topics
Freezing Orders, Receivership, Disclosure of Assets, Legal Expenses Funding, Third Party Funding, Political Persecution Allegations
Civil Procedure Asset Recovery Injunctions Freezing Orders Receivership Disclosure of Assets Legal Expenses Funding Third Party Funding +1 more

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Parties

JSC BTA Bank

Claimant

Mukhtar Ablyazov

First Defendant

16 Other Defendants

Defendants

Procedural Posture

Commercial Court Application (interlocutory) / Ruling on Application for Disclosure of Source of Legal Funding

Legal Issues

  1. 1 Whether the court should order Mr Ablyazov to disclose the ultimate source of funds used to pay his legal expenses, specifically regarding Green Life International SA.
  2. 2 Whether the use of funds borrowed from a third party constitutes a breach of the freezing order.
  3. 3 Whether the court has jurisdiction to order disclosure of the identity of the ultimate beneficial owner and source of funds of a third party funder.

Ratio Decidendi

There is strong ground for believing that the companies funding Mr Ablyazov's legal expenses are his own creatures or conduits, and good reason to believe Green Life may be as well. The court has jurisdiction to order disclosure of the identity of the ultimate beneficial owner and the source of funds of Green Life to ensure the effectiveness of the freezing order and prevent its circumvention. The potential prejudice to Mr Ablyazov does not outweigh the need for disclosure, which will be subject to safeguards. The order is made to the Bank's UK solicitors only, with further dissemination subject to court permission.

Court Disposition

Application granted (subject to conditions)

Orders

  • Mr Ablyazov to provide, within a time to be appointed, a witness statement to the Bank's solicitors stating, to the best of his knowledge and belief: (i) the identities of the directors, shareholders and ultimate beneficial owner of Green Life; (ii) the nature of Green Life's business; (iii) the ultimate source of...
  • The information and documents provided shall be subject to the restricted information regime in paragraph 15 of the Freezing Order.