El Ajou v Stern & Ors

El Ajou v Stern & Ors

The existence of the IVA constitutes a special circumstance rendering it unjust to allow enforcement of the order for interest against Mr Stern while the IVA subsists. The IVA binds Mr El Ajou to the collective enforcement regime, and the order for interest should be stayed to prevent undermining the IVA's operation.

Parties
Claimant: Abdul Ghani El Ajou; First Defendant: William George Stern; Second Defendant: Dollarland (Manhattan) Limited; Third Defendant: Remile Limited; Fourth Defendant: Ilot 68 Developments Limited; Fifth Defendant: Channel Hotels and Properties Limited
Jurisdiction
England and Wales
Judgment Date
01 December 2006
Procedural Posture
Application for Stay of Execution and Declaratory Relief / Post Judgment, Application for Stay of Execution of Interest Award
Outcome
Stay of execution granted
Legal Topics
Individual Voluntary Arrangement (iva), Stay of Execution, Provable Debts in Bankruptcy, Interest on Judgment Debts, Enforcement of Judgments
Insolvency Civil Procedure Contract Individual Voluntary Arrangement (iva) Stay of Execution Provable Debts in Bankruptcy Interest on Judgment Debts Enforcement of Judgments

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Parties

Abdul Ghani El Ajou

Claimant

William George Stern

First Defendant

Dollarland (Manhattan) Limited

Second Defendant

Remile Limited

Third Defendant

Ilot 68 Developments Limited

Fourth Defendant

Channel Hotels and Properties Limited

Fifth Defendant

Procedural Posture

Application for Stay of Execution and Declaratory Relief / Post Judgment, Application for Stay of Execution of Interest Award

Legal Issues

  1. 1 Whether the judgment for interest is subject to the Individual Voluntary Arrangement (IVA) and thus unenforceable against Mr Stern
  2. 2 Whether special circumstances exist to justify a stay of execution under RSC Order 47 Rule 1
  3. 3 Whether the order for interest made by Warren J was appropriate given the existence of the IVA

Ratio Decidendi

The existence of the IVA constitutes a special circumstance rendering it unjust to allow enforcement of the order for interest against Mr Stern while the IVA subsists. The IVA binds Mr El Ajou to the collective enforcement regime, and the order for interest should be stayed to prevent undermining the IVA's operation.

Court Disposition

Stay of execution granted

Orders

  • Execution of the order for payment of interest (€873,671) against Mr Stern is stayed for so long as the IVA subsists and is completed in accordance with its terms.