(Granton Action) JSC BTA Bank v Ablyazov & Ors [2013] EWHC 867 (Comm) (19 April 2013)

(Granton Action) JSC BTA Bank v Ablyazov & Ors [2013] EWHC 867 (Comm) (19 April 2013)

The Bank did not plead or prove its actual interest losses as required for compound interest at common law; therefore, only simple interest under section 35A of the Senior Courts Act 1981 is available. The appropriate rate is 7.3% per annum, reflecting the average borrowing rate of Kazakh banks. Interest should run from the date the cause of action accrued. In the Chrysopa action, interest must be included in the comparison to avoid double recovery.

Citation
[2013] EWHC 867 (Comm)
Parties
Claimant: JSC BTA Bank; Defendant: Mukhtar Ablyazov; Defendant: Zhaksylyk Zharimbetov; Defendant: Ildar Gayarevich Khazhaev; Defendant: Usarel Investments Ltd
Jurisdiction
England and Wales
Judgment Date
19 April 2013
Procedural Posture
Commercial Fraud Claims (granton, Drey, Chrysopa Actions) / Post Liability Judgment; Ruling on Interest and Ancillary Matters
Outcome
Simple interest awarded at 7.3% per annum from the date the cause of action accrued; compound interest at common law refused; interest to be included in double recovery comparison in Chrysopa action.
Legal Topics
Interest on Judgment Debts, Compound Interest, Damages for Fraud, Pleading Requirements, Double Recovery, Jurisdiction of English Courts
Commercial Law Banking Law Civil Procedure Interest on Judgment Debts Compound Interest Damages for Fraud Pleading Requirements Double Recovery +1 more

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Parties

JSC BTA Bank

Claimant

Mukhtar Ablyazov

Defendant

Zhaksylyk Zharimbetov

Defendant

Ildar Gayarevich Khazhaev

Defendant

Usarel Investments Ltd

Defendant

Procedural Posture

Commercial Fraud Claims (granton, Drey, Chrysopa Actions) / Post Liability Judgment; Ruling on Interest and Ancillary Matters

Legal Issues

  1. 1 Whether compound interest as damages at common law is available to the claimant
  2. 2 Whether the claimant sufficiently pleaded and proved actual interest losses
  3. 3 Whether simple interest should be awarded under section 35A of the Senior Courts Act 1981

Ratio Decidendi

The Bank did not plead or prove its actual interest losses as required for compound interest at common law; therefore, only simple interest under section 35A of the Senior Courts Act 1981 is available. The appropriate rate is 7.3% per annum, reflecting the average borrowing rate of Kazakh banks. Interest should run from the date the cause of action accrued. In the Chrysopa action, interest must be included in the comparison to avoid double recovery.

Court Disposition

Simple interest awarded at 7.3% per annum from the date the cause of action accrued; compound interest at common law refused; interest to be included in double recovery comparison in Chrysopa action.

Orders

  • Simple interest at 7.3% per annum awarded to the Bank from the date the cause of action accrued in all actions.
  • Compound interest at common law refused due to lack of pleading and proof.