Servis-Terminal LLC v Drelle [2025] EWCA Civ 62 (31 January 2025)

Servis-Terminal LLC v Drelle [2025] EWCA Civ 62 (31 January 2025)

An unrecognised foreign judgment does not constitute a 'debt' for the purposes of section 267 of the Insolvency Act 1986 and cannot found a bankruptcy petition in England and Wales. The principle that foreign judgments have no direct operation in England, absent recognition or registration, precludes their use as a basis for bankruptcy proceedings. The bankruptcy order against Mr Drelle was therefore set aside and the petition dismissed.

Citation
[2025] EWCA Civ 62
Parties
Petitioner/respondent to the Appeal: Servis-Terminal LLC; Respondent to the Petition/appellant: Valeriy Ernestovich Drelle
Jurisdiction
England and Wales
Judgment Date
31 January 2025
Procedural Posture
Civil Appeal / Court of Appeal Judgment on Appeal From High Court
Outcome
Appeal allowed; bankruptcy order set aside; bankruptcy petition dismissed.
Legal Topics
Recognition and Enforcement of Foreign Judgments, Bankruptcy Petitions, Definition of Debt Under Insolvency Act 1986, State Sovereignty and Foreign Judgments
Insolvency Law Conflict of Laws Recognition and Enforcement of Foreign Judgments Bankruptcy Petitions Definition of Debt Under Insolvency Act 1986 State Sovereignty and Foreign Judgments

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Parties

Servis-Terminal LLC

Petitioner/respondent to the Appeal

Valeriy Ernestovich Drelle

Respondent to the Petition/appellant

Procedural Posture

Civil Appeal / Court of Appeal Judgment on Appeal From High Court

Legal Issues

  1. 1 Whether a bankruptcy petition can be founded on an unrecognised foreign judgment in England and Wales
  2. 2 Whether an unrecognised foreign judgment constitutes a 'debt' under section 267 of the Insolvency Act 1986

Ratio Decidendi

An unrecognised foreign judgment does not constitute a 'debt' for the purposes of section 267 of the Insolvency Act 1986 and cannot found a bankruptcy petition in England and Wales. The principle that foreign judgments have no direct operation in England, absent recognition or registration, precludes their use as a basis for bankruptcy proceedings. The bankruptcy order against Mr Drelle was therefore set aside and the petition dismissed.

Court Disposition

Appeal allowed; bankruptcy order set aside; bankruptcy petition dismissed.

Orders

  • The appeal is allowed.
  • The bankruptcy order made by ICC Judge Burton is set aside.