JSC Mezhdunarodniy Promyshelnniy Bank & Anor v Pugachev & Ors [2015] EWHC 2623 (Ch) (27 August 2015)

JSC Mezhdunarodniy Promyshelnniy Bank & Anor v Pugachev & Ors [2015] EWHC 2623 (Ch) (27 August 2015)

The court held that further disclosure by LCL regarding its euro account and payments exceeding €13,000 since March 2015 was necessary to police the freezing order, given unexplained dissipation of funds. The passport order against Mr. Pugachev was extended to allow the claimants time to challenge the adequacy of his affidavit, but not indefinitely or automatically. The court declined to order wholesale disclosure of LCL's sterling account transactions, finding no sufficient basis. The court clarified the scope of LCL's disclosure obligations to include assets administered or managed for Mr. Pugachev, not limited to those held on his instructions.

Citation
[2015] EWHC 2623 (Ch)
Parties
Applicant/claimant: JSC Mezhdunarodniy Promyshelniy Bank; Applicant/claimant: State Corporation 'Deposit Insurance Agency'; Respondent/defendant: Sergei Viktorovich Pugachev; Respondent/defendant: KEA Trust Company Limited; Respondent/defendant: Finetree Company Limited; Respondent/defendant: Bramerton Company Limited; Respondent/defendant: Bluering Company Limited; Respondent/defendant: Maru Limited; Respondent/defendant: Hapori Limited; Respondent/defendant: Miharo Limited; Respondent/defendant: Arotau Limited; Respondent/defendant: Luxury Consulting Limited; Respondent/defendant: Victor Sergeyevitch Pugachev
Jurisdiction
England and Wales
Judgment Date
27 August 2015
Procedural Posture
Chancery Division Civil Proceedings (freezing Injunction and Ancillary Relief) / Interlocutory Applications for Continuation and Variation of Freezing Orders, Disclosure, and Passport Restraint
Outcome
Applications granted in part; freezing orders continued by consent with modifications; further disclosure ordered from LCL regarding euro account; passport order extended temporarily pending further application.
Legal Topics
Worldwide Freezing Orders, Ancillary Disclosure, Passport Orders, Enforcement of Foreign Judgments, Self Incrimination Privilege, Chabra Jurisdiction
Civil Procedure Insolvency Asset Recovery Trusts and Equity Worldwide Freezing Orders Ancillary Disclosure Passport Orders Enforcement of Foreign Judgments +2 more

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Parties

JSC Mezhdunarodniy Promyshelniy Bank

Applicant/claimant

State Corporation 'Deposit Insurance Agency'

Applicant/claimant

Sergei Viktorovich Pugachev

Respondent/defendant

KEA Trust Company Limited

Respondent/defendant

Finetree Company Limited

Respondent/defendant

Bramerton Company Limited

Respondent/defendant

Bluering Company Limited

Respondent/defendant

Maru Limited

Respondent/defendant

Hapori Limited

Respondent/defendant

Miharo Limited

Respondent/defendant

Arotau Limited

Respondent/defendant

Luxury Consulting Limited

Respondent/defendant

Victor Sergeyevitch Pugachev

Respondent/defendant

Procedural Posture

Chancery Division Civil Proceedings (freezing Injunction and Ancillary Relief) / Interlocutory Applications for Continuation and Variation of Freezing Orders, Disclosure, and Passport Restraint

Legal Issues

  1. 1 Whether to continue and/or vary worldwide freezing orders against the defendants
  2. 2 Whether to require further disclosure from Luxury Consulting Limited (LCL) regarding assets and payments
  3. 3 Whether to continue the order restraining Mr. Pugachev from leaving the jurisdiction and requiring surrender of passports

Ratio Decidendi

The court held that further disclosure by LCL regarding its euro account and payments exceeding €13,000 since March 2015 was necessary to police the freezing order, given unexplained dissipation of funds. The passport order against Mr. Pugachev was extended to allow the claimants time to challenge the adequacy of his affidavit, but not indefinitely or automatically. The court declined to order wholesale disclosure of LCL's sterling account transactions, finding no sufficient basis. The court clarified the scope of LCL's disclosure obligations to include assets administered or managed for Mr. Pugachev, not limited to those held on his instructions.

Court Disposition

Applications granted in part; freezing orders continued by consent with modifications; further disclosure ordered from LCL regarding euro account; passport order extended temporarily pending further application.

Orders

  • Date for compliance with passport order extended to 21 September 2015, with further extension if claimants apply to challenge adequacy of affidavit.
  • LCL to provide, by affidavit, details and bank statements of all euro account payments exceeding €13,000 from March 2015 to present.