Arcelormittal USA LLC v Ruia & Ors

Arcelormittal USA LLC v Ruia & Ors

AMUSA has not shown a good arguable case on the merits of its substantive claim, nor solid evidence of a risk of dissipation by any of the respondents. The restructuring and asset transfers predated the relevant contract and were not shown to be part of a conspiracy. The order sought would cause grave prejudice to the Essar group and its main lender, VTB, and is not just and convenient. The application for a worldwide freezing order is dismissed.

Parties
Claimant: ArcelorMittal USA LLC; Defendant: Mr Ravi Ruia; Defendant: Mr Prashant Ruia; Defendant: Essar Global Fund Limited; Defendant: Mr Sushil Baid; Defendant: Mr Andrew Wright; Defendant: Mr Joseph Seifert; Defendant: Mr Uday Kumar Gujadhur; Defendant: Mr Nigel Bell; Defendant: Essar Capital Limited; Defendant: Essar Capital Services (UK) Limited; Interested Party: VTB Bank PJSC
Jurisdiction
England and Wales
Judgment Date
30 March 2020
Procedural Posture
Commercial Court Application / Ruling on Application for Worldwide Freezing Injunction and Ancillary Disclosure Orders
Outcome
Application dismissed
Legal Topics
Freezing Injunctions, Asset Dissipation, Unlawful Means Conspiracy, Enforcement of Arbitral Awards, Corporate Restructuring, Cross Border Insolvency
Commercial Law Civil Procedure International Arbitration Freezing Injunctions Asset Dissipation Unlawful Means Conspiracy Enforcement of Arbitral Awards Corporate Restructuring +1 more

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Parties

ArcelorMittal USA LLC

Claimant

Mr Ravi Ruia

Defendant

Mr Prashant Ruia

Defendant

Essar Global Fund Limited

Defendant

Mr Sushil Baid

Defendant

Mr Andrew Wright

Defendant

Mr Joseph Seifert

Defendant

Mr Uday Kumar Gujadhur

Defendant

Mr Nigel Bell

Defendant

Essar Capital Limited

Defendant

Essar Capital Services (UK) Limited

Defendant

VTB Bank PJSC

Interested Party

Procedural Posture

Commercial Court Application / Ruling on Application for Worldwide Freezing Injunction and Ancillary Disclosure Orders

Legal Issues

  1. 1 Whether AMUSA has a good arguable case for unlawful means conspiracy against the defendants
  2. 2 Whether there is a real risk of unjustified dissipation of assets by the defendants
  3. 3 Whether a worldwide freezing order is just and convenient in the circumstances

Ratio Decidendi

AMUSA has not shown a good arguable case on the merits of its substantive claim, nor solid evidence of a risk of dissipation by any of the respondents. The restructuring and asset transfers predated the relevant contract and were not shown to be part of a conspiracy. The order sought would cause grave prejudice to the Essar group and its main lender, VTB, and is not just and convenient. The application for a worldwide freezing order is dismissed.

Court Disposition

Application dismissed