(Granton Action) JSC BTA Bank v Ablyazov & Ors

(Granton Action) JSC BTA Bank v Ablyazov & Ors

The Bank did not plead or prove its actual interest losses; therefore, it is not entitled to compound interest at common law but only to simple interest under section 35A of the Senior Courts Act 1981. Interest should be awarded at 7.3% per annum from the date the cause of action accrued. In the Chrysopa action, interest is to be included in the comparison to avoid double recovery.

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/ancillary Relief / Post Liability Judgment; Ruling on Interest
Outcome
Simple interest awarded under section 35A SCA 1981; no compound interest at common law; interest included in double recovery comparison.
Legal Topics
Interest on Judgment Debts, Compound Interest, Damages, Pleading Requirements, Double Recovery
Commercial Law Banking Law Civil Procedure Interest on Judgment Debts Compound Interest Damages Pleading Requirements Double Recovery

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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/ancillary Relief / Post Liability Judgment; Ruling on Interest

Legal Issues

  1. 1 Whether the claimant pleaded and proved actual interest losses to justify compound interest at common law
  2. 2 Whether interest should be awarded under section 35A of the Senior Courts Act 1981
  3. 3 From what date interest should run under section 35A SCA 1981

Ratio Decidendi

The Bank did not plead or prove its actual interest losses; therefore, it is not entitled to compound interest at common law but only to simple interest under section 35A of the Senior Courts Act 1981. Interest should be awarded at 7.3% per annum from the date the cause of action accrued. In the Chrysopa action, interest is to be included in the comparison to avoid double recovery.

Court Disposition

Simple interest awarded under section 35A SCA 1981; no compound interest at common law; interest included in double recovery comparison.

Orders

  • Simple interest at 7.3% per annum awarded to the Bank from the date the cause of action accrued in all actions.
  • In the Chrysopa action, interest is to be included in the comparison with the value of shares to avoid double recovery.