JSC Commercial Bank Privatbank v Kolomoisky & Ors [2021] EWHC 403 (Ch) (24 February 2021)

JSC Commercial Bank Privatbank v Kolomoisky & Ors [2021] EWHC 403 (Ch) (24 February 2021)

There were deficiencies and ambiguities in Mr Kolomoisky's original asset disclosure regarding the Bitcoin investment, but these were not so significant or actively misleading as to justify the exceptional step of ordering cross-examination. The Bank could have sought clarification earlier, and the disclosure, while imperfect, was not false or calculated to frustrate the freezing order. Cross-examination is not proportionate or necessary at this stage.

Citation
[2021] EWHC 403 (Ch)
Parties
Claimant: JSC 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; Ninth Defendant: ZAO Ukrtransitservice Ltd
Jurisdiction
England and Wales
Judgment Date
24 February 2021
Procedural Posture
Asset Disclosure in Aid of Freezing Order (interlocutory Application) / Application for Cross Examination of Defendant as to Assets
Outcome
Application for cross-examination refused
Legal Topics
Freezing Orders, Asset Disclosure, Cross Examination, Fraudulent Misappropriation, Interim Remedies
Civil Procedure Banking Law Fraud Freezing Orders Asset Disclosure Cross Examination Fraudulent Misappropriation Interim Remedies

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Parties

JSC 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 Ltd

Ninth Defendant

Procedural Posture

Asset Disclosure in Aid of Freezing Order (interlocutory Application) / Application for Cross Examination of Defendant as to Assets

Legal Issues

  1. 1 Whether there are significant or serious deficiencies in Mr Kolomoisky's asset disclosure justifying cross-examination under a freezing order
  2. 2 Whether the description of the Bitcoin investment asset was misleading or inadequate
  3. 3 Whether cross-examination is proportionate and necessary to police the freezing order

Ratio Decidendi

There were deficiencies and ambiguities in Mr Kolomoisky's original asset disclosure regarding the Bitcoin investment, but these were not so significant or actively misleading as to justify the exceptional step of ordering cross-examination. The Bank could have sought clarification earlier, and the disclosure, while imperfect, was not false or calculated to frustrate the freezing order. Cross-examination is not proportionate or necessary at this stage.

Court Disposition

Application for cross-examination refused

Orders

  • No order for cross-examination of Mr Kolomoisky as to his assets
  • No further affidavit required at this stage regarding the Bitcoin investment