Midtown Acquisitions LP v Essar Global Fund Ltd & Ors [2017] EWHC 2206 (QB) (30 August 2017)

Midtown Acquisitions LP v Essar Global Fund Ltd & Ors [2017] EWHC 2206 (QB) (30 August 2017)

The enforcement officer did not have lawful authority to take control of the aircraft at Stansted Airport on 27 July 2017 as the warrant specified a different location and the writ of control alone did not entitle access; however, it was not unreasonable for the judgment creditor to seek control of the aircraft despite the secured debt exceeding its value, as circumstances regarding the secured creditor may change and the asset is substantial.

Citation
[2017] EWHC 2206
Parties
Claimant/respondent: Midtown Acquisitions LP; First Defendant/applicant: Essar Global Fund Limited; Second Defendant/applicant: Essar Shipping and Logistics Limited; Third Defendant/applicant: White Springs Holdings Limited; Non Party Respondent: Mr. David Asker, High Court Enforcement Officer
Jurisdiction
England and Wales
Judgment Date
30 August 2017
Procedural Posture
Commercial Enforcement Proceedings / Interlocutory Application to Set Aside Enforcement Orders
Outcome
Partial success for defendants on validity of enforcement steps; further issues to be determined at later date.
Legal Topics
Writ of Control, Enforcement Against Aircraft, Entry Warrants, Priority of Secured Creditors, Tribunals, Courts and Enforcement Act 2007
Civil Procedure Commercial Law Enforcement of Judgments Writ of Control Enforcement Against Aircraft Entry Warrants Priority of Secured Creditors Tribunals, Courts and Enforcement Act 2007

Case Brief

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Parties

Midtown Acquisitions LP

Claimant/respondent

Essar Global Fund Limited

First Defendant/applicant

Essar Shipping and Logistics Limited

Second Defendant/applicant

White Springs Holdings Limited

Third Defendant/applicant

Mr. David Asker, High Court Enforcement Officer

Non Party Respondent

Procedural Posture

Commercial Enforcement Proceedings / Interlocutory Application to Set Aside Enforcement Orders

Legal Issues

  1. 1 Whether the enforcement officer lawfully took control of the aircraft under a writ of control without a valid entry warrant for the correct premises
  2. 2 Whether the court should set aside the writ of control and entry warrants due to lack of lawful authority and futility given the secured debt exceeding asset value

Ratio Decidendi

The enforcement officer did not have lawful authority to take control of the aircraft at Stansted Airport on 27 July 2017 as the warrant specified a different location and the writ of control alone did not entitle access; however, it was not unreasonable for the judgment creditor to seek control of the aircraft despite the secured debt exceeding its value, as circumstances regarding the secured creditor may change and the asset is substantial.

Court Disposition

Partial success for defendants on validity of enforcement steps; further issues to be determined at later date.

Orders

  • The steps taken by the enforcement officer to take control of the aircraft at Stansted Airport on 27 July 2017 were not valid and are set aside.
  • It is not unreasonable for the judgment creditor to seek to take control of the aircraft; further issues, including ownership and secured creditor status, to be determined at a later hearing.