JSC BTA Bank v Ablyazov & Ors [2011] EWHC 587 (Comm) (28 March 2011)

JSC BTA Bank v Ablyazov & Ors [2011] EWHC 587 (Comm) (28 March 2011)

There is a valid arbitration agreement covering the disputes between the Bank and Tekhinvest. The Bank has not established that the arbitration agreement is null and void, inoperative, or incapable of being performed. The claims against Tekhinvest fall within the scope of the arbitration clause. The proceedings against Tekhinvest are stayed under section 9 of the Arbitration Act 1996. The claims against Colligate are stayed on case management grounds pending the outcome of the Tekhinvest arbitration.

Citation
[2011] EWHC 587 (Comm)
Parties
Claimant: JSC BTA Bank; First Defendant: Mukhtar Ablyazov; Second Defendant: Ildar Gayarevich Khazhaev; Third Defendant/applicant: CJSC Tekhinvest; Fourth Defendant: Konvis LLC; Fifth Defendant: PaladioExport LLC; Sixth Defendant: CityBestPlus LLC; Seventh Defendant/applicant: Colligate Investments Limited
Jurisdiction
England and Wales
Judgment Date
28 March 2011
Procedural Posture
Commercial Court Application for Stay of Proceedings / Interlocutory Application for Stay Under Arbitration Act 1996 and Case Management Grounds
Outcome
Stay of proceedings granted against Tekhinvest under Arbitration Act 1996 and against Colligate on case management grounds.
Legal Topics
Stay of Proceedings, Arbitration Agreement, Separability, Jurisdiction, Case Management Stay
Arbitration Commercial Law Conflict of Laws Stay of Proceedings Arbitration Agreement Separability Jurisdiction Case Management Stay

Case Brief

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Parties

JSC BTA Bank

Claimant

Mukhtar Ablyazov

First Defendant

Ildar Gayarevich Khazhaev

Second Defendant

CJSC Tekhinvest

Third Defendant/applicant

Konvis LLC

Fourth Defendant

PaladioExport LLC

Fifth Defendant

CityBestPlus LLC

Sixth Defendant

Colligate Investments Limited

Seventh Defendant/applicant

Procedural Posture

Commercial Court Application for Stay of Proceedings / Interlocutory Application for Stay Under Arbitration Act 1996 and Case Management Grounds

Legal Issues

  1. 1 Whether the claims against Tekhinvest should be stayed under section 9 of the Arbitration Act 1996 due to an arbitration agreement
  2. 2 Whether the arbitration agreement is null and void, inoperative, or incapable of being performed
  3. 3 Whether the claims against Colligate should be stayed on case management grounds

Ratio Decidendi

There is a valid arbitration agreement covering the disputes between the Bank and Tekhinvest. The Bank has not established that the arbitration agreement is null and void, inoperative, or incapable of being performed. The claims against Tekhinvest fall within the scope of the arbitration clause. The proceedings against Tekhinvest are stayed under section 9 of the Arbitration Act 1996. The claims against Colligate are stayed on case management grounds pending the outcome of the Tekhinvest arbitration.

Court Disposition

Stay of proceedings granted against Tekhinvest under Arbitration Act 1996 and against Colligate on case management grounds.

Orders

  • Proceedings against Tekhinvest stayed under section 9 of the Arbitration Act 1996 pending arbitration.
  • Proceedings against Colligate Investments Limited stayed on case management grounds pending outcome of Tekhinvest arbitration.