PJSC Commercial Bank Privatbank v Kolomoisky & Ors [2018] EWHC 1910 (Ch) (24 July 2018)

PJSC Commercial Bank Privatbank v Kolomoisky & Ors [2018] EWHC 1910 (Ch) (24 July 2018)

Payments made by A Co. and Selantia under pre-existing loan agreements, and payments by Goiania under the Agency Agreement, were in the ordinary and proper course of their respective businesses and thus permitted under the freezing order exception. However, payments made by or at the direction of the respondent to fund B Co.'s legal fees were not in the ordinary and proper course of the respondent's business and required applicant's agreement or court permission.

Citation
[2018] EWHC 1910 (Ch)
Parties
Claimant: PJSC Commercial Bank Privatbank; First Defendant: Igor Valeryevich Kolomoisky; Second Defendant: Gennadiy Borisovich Bogolyubov; Third Defendant: Teamtrend Limited; Fourth Defendant: Trade Point Agro Limited; Fifth Defendant: Collyer Limited; Sixth Defendant: Rossyn Investing Corp; Seventh Defendant: Milbert Ventures Inc; Eighth Defendant: ZAO Ukrtransitservice Limited
Jurisdiction
England and Wales
Judgment Date
24 July 2018
Procedural Posture
Interlocutory Application in Civil Proceedings / Application for Declarations Regarding Scope of Freezing Order Exceptions
Outcome
Declarations sought by the applicant in relation to A Co., Selantia, Atrasten, and Goiania transactions refused; declaration granted in relation to B Co. legal fees payments by or at the direction of the respondent.
Legal Topics
Freezing Injunctions, Ordinary and Proper Course of Business Exception, Asset Dissipation, Corporate Control, Enforcement of Foreign Claims
Civil Procedure Banking Law Injunctions Freezing Injunctions Ordinary and Proper Course of Business Exception Asset Dissipation Corporate Control Enforcement of Foreign Claims

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Parties

PJSC Commercial Bank Privatbank

Claimant

Igor Valeryevich Kolomoisky

First Defendant

Gennadiy Borisovich Bogolyubov

Second Defendant

Teamtrend Limited

Third Defendant

Trade Point Agro Limited

Fourth Defendant

Collyer Limited

Fifth Defendant

Rossyn Investing Corp

Sixth Defendant

Milbert Ventures Inc

Seventh Defendant

ZAO Ukrtransitservice Limited

Eighth Defendant

Procedural Posture

Interlocutory Application in Civil Proceedings / Application for Declarations Regarding Scope of Freezing Order Exceptions

Legal Issues

  1. 1 Whether payments made by or at the direction of the First Defendant or his controlled companies fall within the 'ordinary and proper course of business' exception to a freezing order
  2. 2 Whether the First Defendant requires prior consent or court permission for such payments under the terms of the freezing order

Ratio Decidendi

Payments made by A Co. and Selantia under pre-existing loan agreements, and payments by Goiania under the Agency Agreement, were in the ordinary and proper course of their respective businesses and thus permitted under the freezing order exception. However, payments made by or at the direction of the respondent to fund B Co.'s legal fees were not in the ordinary and proper course of the respondent's business and required applicant's agreement or court permission.

Court Disposition

Declarations sought by the applicant in relation to A Co., Selantia, Atrasten, and Goiania transactions refused; declaration granted in relation to B Co. legal fees payments by or at the direction of the respondent.

Orders

  • Refusal to declare that past and future drawdowns by A Co. of the Selantia loan, interest payments by A Co. to Atrasten, and repayment of the Atrasten loan principal are not permitted under the order.
  • Refusal to declare that past and future payments by Goiania in connection with the aircraft lease are not permitted under the order.