JSC BTA Bank v Ablyazov & Anor

JSC BTA Bank v Ablyazov & Anor

There is a real risk, supported by evidence, that Mr Khrapunov's legal expenses may be funded from assets subject to the WFO, either as assets of Mr Ablyazov or from Mr Khrapunov's own undisclosed assets. Disclosure is necessary and appropriate to police the effectiveness of the WFO and is not oppressive, as it is limited to what Mr Khrapunov knows or can reasonably ascertain.

Parties
Claimant/applicant: JSC BTA Bank; First Defendant: Mukhtar Ablyazov; Second Defendant/respondent: Ilyas Khrapunov
Jurisdiction
England and Wales
Judgment Date
08 June 2018
Procedural Posture
Commercial Court Application (freezing Order Enforcement) / Interlocutory Application for Disclosure Order
Outcome
Application granted
Legal Topics
Freezing Orders, Disclosure of Asset Funding, Policing Injunctions, Use of Nominees, Legal Expenses Under WFO
Civil Procedure Asset Recovery Banking Law Freezing Orders Disclosure of Asset Funding Policing Injunctions Use of Nominees Legal Expenses Under WFO

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Parties

JSC BTA Bank

Claimant/applicant

Mukhtar Ablyazov

First Defendant

Ilyas Khrapunov

Second Defendant/respondent

Procedural Posture

Commercial Court Application (freezing Order Enforcement) / Interlocutory Application for Disclosure Order

Legal Issues

  1. 1 Whether the court should order disclosure of the source of funds used to pay the second defendant's legal expenses under a worldwide freezing order (WFO)
  2. 2 Whether there is a real risk that legal expenses are being paid from frozen assets in breach of the WFO
  3. 3 Whether the court can rely on findings from other proceedings involving non-parties

Ratio Decidendi

There is a real risk, supported by evidence, that Mr Khrapunov's legal expenses may be funded from assets subject to the WFO, either as assets of Mr Ablyazov or from Mr Khrapunov's own undisclosed assets. Disclosure is necessary and appropriate to police the effectiveness of the WFO and is not oppressive, as it is limited to what Mr Khrapunov knows or can reasonably ascertain.

Court Disposition

Application granted

Orders

  • Mr Khrapunov is ordered to provide full and proper disclosure, with supporting documentation, as to the source of funding for his legal expenses, to the best of his ability and after reasonable inquiry, including inquiry of his mother.
  • Disclosure to be subject to a confidentiality club to protect third-party interests, subject to further order.