Ministry of Defence and Support of the Armed Forces for the Islamic Republic of Iran v Faz Aviation Ltd.& Anor

Ministry of Defence and Support of the Armed Forces for the Islamic Republic of Iran v Faz Aviation Ltd.& Anor

MODSAF failed to show a good arguable case that Faz Aviation Limited had its central administration or principal place of business in England at the relevant date (21 July 2006). The evidence indicated that Faz was administered and controlled from Cyprus, and any business activities in England had ceased by mid-2005. Therefore, the English court does not have jurisdiction over either defendant.

Parties
Claimant: Ministry of Defence and Support of the Armed Forces for the Islamic Republic of Iran; First Defendant: Faz Aviation Limited (formerly known as FN Aviation Limited); Second Defendant: Fouad Al-Zayat
Jurisdiction
England and Wales
Judgment Date
09 May 2007
Procedural Posture
Commercial Court Civil Claim / Interlocutory Application—challenge to Jurisdiction
Outcome
Jurisdiction declined—claim dismissed for lack of jurisdiction
Legal Topics
Jurisdiction, Domicile of Companies, Freezing Orders, EU Regulation No 44/2001
Civil Procedure Private International Law Jurisdiction Domicile of Companies Freezing Orders EU Regulation No 44/2001

Case Brief

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Parties

Ministry of Defence and Support of the Armed Forces for the Islamic Republic of Iran

Claimant

Faz Aviation Limited (formerly known as FN Aviation Limited)

First Defendant

Fouad Al-Zayat

Second Defendant

Procedural Posture

Commercial Court Civil Claim / Interlocutory Application—challenge to Jurisdiction

Legal Issues

  1. 1 Whether the English court has jurisdiction over Faz Aviation Limited and Fouad Al-Zayat under Article 2 and Article 6 of EU Regulation No 44/2001 based on domicile.
  2. 2 Whether Faz Aviation Limited's central administration or principal place of business was in England at the relevant time.

Ratio Decidendi

MODSAF failed to show a good arguable case that Faz Aviation Limited had its central administration or principal place of business in England at the relevant date (21 July 2006). The evidence indicated that Faz was administered and controlled from Cyprus, and any business activities in England had ceased by mid-2005. Therefore, the English court does not have jurisdiction over either defendant.

Court Disposition

Jurisdiction declined—claim dismissed for lack of jurisdiction

Orders

  • The court does not have jurisdiction over either defendant in respect of this claim.
  • Defendants are entitled to orders accordingly.