Arcelormittal USA LLC v Essar Steel Ltd [2019] EWHC 724 (Comm) (25 March 2019)

Arcelormittal USA LLC v Essar Steel Ltd [2019] EWHC 724 (Comm) (25 March 2019)

There is solid evidence of a real risk of dissipation of assets by Essar Steel and related entities, including past conduct amounting to bad faith or fraud, concealment of material financial information, and use of complex corporate structures to frustrate enforcement. The court has jurisdiction to grant and...

Source-derived case information.

Citation
[2019] EWHC 724 (Comm)
Parties
Claimant/applicant/claimant in the Arbitration: ArcelorMittal USA LLC; Defendant/respondent in the Arbitration: Essar Steel Limited; Respondent/defendant: Essar Capital Services (UK) Limited; Respondent/defendant: Mr Prashant Ruia; Respondent/defendant: Mr Sushil Baid; Defendant: Mr Joseph Seifert; Defendant: Mr Nicholas Harrold; Defendant: Mr Andrew Wright; Defendant: Mr Nigel Bell; Non Party: Essar Oil (UK) Limited
Jurisdiction
England and Wales
Judgment Date
25 March 2019
Procedural Posture
Commercial Court Enforcement and Ancillary Relief Proceedings (including Part 8 Claim) / Interlocutory Judgment on Applications to Discharge Worldwide Freezing Order, Search Orders, and Norwich Pharmacal Relief
Outcome
Applications to discharge the worldwide freezing order, search orders, and Norwich Pharmacal relief dismissed; orders maintained.
Legal Topics
Enforcement of Arbitral Awards, Worldwide Freezing Orders, Search Orders, Norwich Pharmacal Relief, Asset Dissipation, Jurisdiction, Recognition of Foreign Judgments
Arbitration Commercial Law Civil Procedure Insolvency Enforcement of Arbitral Awards Worldwide Freezing Orders Search Orders Norwich Pharmacal Relief +3 more

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Parties

ArcelorMittal USA LLC

Claimant/applicant/claimant in the Arbitration

Essar Steel Limited

Defendant/respondent in the Arbitration

Essar Capital Services (UK) Limited

Respondent/defendant

Mr Prashant Ruia

Respondent/defendant

Mr Sushil Baid

Respondent/defendant

Mr Joseph Seifert

Defendant

Mr Nicholas Harrold

Defendant

Mr Andrew Wright

Defendant

Mr Nigel Bell

Defendant

Essar Oil (UK) Limited

Non Party

Procedural Posture

Commercial Court Enforcement and Ancillary Relief Proceedings (including Part 8 Claim) / Interlocutory Judgment on Applications to Discharge Worldwide Freezing Order, Search Orders, and Norwich Pharmacal Relief

Legal Issues

  1. 1 Whether the worldwide freezing order (WFO), search orders, and Norwich Pharmacal relief should be maintained or discharged
  2. 2 Whether there is a real risk of dissipation of assets justifying the WFO
  3. 3 Whether the court has jurisdiction to grant ancillary relief in aid of enforcement of a foreign arbitral award

Ratio Decidendi

There is solid evidence of a real risk of dissipation of assets by Essar Steel and related entities, including past conduct amounting to bad faith or fraud, concealment of material financial information, and use of complex corporate structures to frustrate enforcement. The court has jurisdiction to grant and maintain the worldwide freezing order, search orders, and Norwich Pharmacal relief in aid of enforcement of the arbitral award. The orders are justified and proportionate in the circumstances.

Court Disposition

Applications to discharge the worldwide freezing order, search orders, and Norwich Pharmacal relief dismissed; orders maintained.

Orders

  • Worldwide freezing order against Essar Steel maintained
  • Search order against Essar Capital Services (UK) Limited, Mr Prashant Ruia, and Mr Sushil Baid maintained