Koza Ltd & Anor v Koza Altin Isletmeleri AS

Koza Ltd & Anor v Koza Altin Isletmeleri AS

The Court has jurisdiction to grant an injunction ancillary to an undertaking, even where breach cannot be definitively determined, provided there is a high degree of assurance of breach and the balance of irremediable prejudice favours the injunction. The application was not an abuse of process as it did not collaterally attack the prior Court of Appeal decision, and Koza Altin had a legitimate proprietary interest in preserving company assets pending resolution of the dispute.

Parties
Claimant/appellant: Koza Limited; Claimant/appellant: Hamdi Akin Ipek; Defendant/respondent: Koza Altin Isletmeleri AS
Jurisdiction
England and Wales
Judgment Date
31 July 2020
Procedural Posture
Civil Appeal / Appeal From High Court Injunction Decision
Outcome
Appeal dismissed (majority); injunction upheld
Legal Topics
Freezing Orders, Business Exception, Abuse of Process, Ancillary Jurisdiction, Declaratory Relief
Company Law Injunctions Civil Procedure Freezing Orders Business Exception Abuse of Process Ancillary Jurisdiction Declaratory Relief

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Parties

Koza Limited

Claimant/appellant

Hamdi Akin Ipek

Claimant/appellant

Koza Altin Isletmeleri AS

Defendant/respondent

Procedural Posture

Civil Appeal / Appeal From High Court Injunction Decision

Legal Issues

  1. 1 Whether an injunction can be granted to restrain alleged breach of an undertaking where breach cannot be definitively determined
  2. 2 Whether the application for injunction was an abuse of process due to overlap with prior proceedings
  3. 3 Jurisdictional basis for granting injunction absent underlying claim for financial remedy

Ratio Decidendi

The Court has jurisdiction to grant an injunction ancillary to an undertaking, even where breach cannot be definitively determined, provided there is a high degree of assurance of breach and the balance of irremediable prejudice favours the injunction. The application was not an abuse of process as it did not collaterally attack the prior Court of Appeal decision, and Koza Altin had a legitimate proprietary interest in preserving company assets pending resolution of the dispute.

Court Disposition

Appeal dismissed (majority); injunction upheld

Orders

  • Permission to appeal granted
  • Injunction restraining Koza Ltd from funding arbitration upheld