Edward Thomas & Ors v PJSC National Bank Trust

Edward Thomas & Ors v PJSC National Bank Trust

There is no evidence that NBT is controlled by a designated person within the meaning of Regulation 7(4); OFSI confirms NBT is not subject to UK sanctions; Regulation 58(5) exemption applies as obligations arose before designation; trustees may distribute funds to NBT via Steptoe LLP, subject to ongoing monitoring and notification to OFSI.

Parties
Applicant: Edward Thomas; Applicant: Matther Carter; Applicant: Ann Nilsson; Interested Party: PJSC National Bank Trust
Jurisdiction
England and Wales
Judgment Date
31 January 2025
Procedural Posture
Bankruptcy Application / Judgment on Application for Directions Under Section 303 Insolvency Act 1986
Outcome
application granted
Legal Topics
Financial Sanctions, Ownership and Control, Distribution to Creditors, Trustee Liability, Regulation 7(4) Interpretation
Insolvency Sanctions Bankruptcy Financial Sanctions Ownership and Control Distribution to Creditors Trustee Liability Regulation 7(4) Interpretation

Case Brief

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Parties

Edward Thomas

Applicant

Matther Carter

Applicant

Ann Nilsson

Applicant

PJSC National Bank Trust

Interested Party

Procedural Posture

Bankruptcy Application / Judgment on Application for Directions Under Section 303 Insolvency Act 1986

Legal Issues

  1. 1 Whether trustees can distribute bankruptcy funds to PJSC National Bank Trust without breaching UK sanctions regime
  2. 2 Whether NBT is controlled by a designated person under Regulation 7(4)
  3. 3 Whether Regulation 58(5) exemption applies to distributions

Ratio Decidendi

There is no evidence that NBT is controlled by a designated person within the meaning of Regulation 7(4); OFSI confirms NBT is not subject to UK sanctions; Regulation 58(5) exemption applies as obligations arose before designation; trustees may distribute funds to NBT via Steptoe LLP, subject to ongoing monitoring and notification to OFSI.

Court Disposition

application granted

Orders

  • Trustees permitted to make distributions by way of dividend of funds in the bankruptcies due to NBT by payments to Steptoe LLP client account.
  • Trustees must notify OFSI of the court's order.