JSC BTA Bank v Ablyazov & Ors [2012] EWHC 2698 (Comm) (08 October 2012)

JSC BTA Bank v Ablyazov & Ors [2012] EWHC 2698 (Comm) (08 October 2012)

The English court has jurisdiction to appoint a receiver for the limited purpose of ensuring that Usarel Investments Limited is represented at trial in the English proceedings, as the application does not constitute 'proceedings' within Article 22.2 of the Judgments Regulation. It is just and convenient to make the appointment to avoid injustice, and there is no real risk of conflict with the Cypriot court or prejudice to the Bank.

Citation
[2012] EWHC 2698 (Comm)
Parties
Claimant: JSC BTA Bank; Defendant: Mukhtar Ablyazov; Defendant: Usarel Investments Limited; Applicants: Applicants (shareholders and corporate directors of Usarel)
Jurisdiction
England and Wales
Judgment Date
08 October 2012
Procedural Posture
Commercial Court Action (chrysopa Action) / Interlocutory Application for Appointment of Receiver Prior to Trial
Outcome
Application granted
Legal Topics
Appointment of Receiver, Jurisdiction Under Judgments Regulation, Representation of Companies in Litigation, Internal Company Management, Cross Border Company Disputes
Company Law Civil Procedure Conflict of Laws Appointment of Receiver Jurisdiction Under Judgments Regulation Representation of Companies in Litigation Internal Company Management Cross Border Company Disputes

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Parties

JSC BTA Bank

Claimant

Mukhtar Ablyazov

Defendant

Usarel Investments Limited

Defendant

Applicants (shareholders and corporate directors of Usarel)

Applicants

Procedural Posture

Commercial Court Action (chrysopa Action) / Interlocutory Application for Appointment of Receiver Prior to Trial

Legal Issues

  1. 1 Whether the English court has jurisdiction to appoint a receiver for a Cypriot company for the purpose of defending English proceedings
  2. 2 Whether it is just and convenient to appoint a receiver to ensure representation of a defendant company at trial
  3. 3 Whether Article 22 of the Judgments Regulation precludes the English court from making such an order

Ratio Decidendi

The English court has jurisdiction to appoint a receiver for the limited purpose of ensuring that Usarel Investments Limited is represented at trial in the English proceedings, as the application does not constitute 'proceedings' within Article 22.2 of the Judgments Regulation. It is just and convenient to make the appointment to avoid injustice, and there is no real risk of conflict with the Cypriot court or prejudice to the Bank.

Court Disposition

Application granted

Orders

  • Appointment of David Rubin of David Rubin & Partners LLP as litigation receiver (receiver ad litem) of Usarel Investments Limited for the purpose of defending the claim in the English proceedings.
  • Applicants to pay £25,000 into court within 7 days as security for undertakings.