Koza Ltd & Anor v Akcil & Ors

Koza Ltd & Anor v Akcil & Ors

The Court of Appeal held that, due to serious doubts about the authenticity of the SPA, it could not grant a positive declaration that the ICSID arbitration funding was in the ordinary and proper course of business, but also that the negative declaration should be discharged; for the extradition expenses, the court found that payment by Koza Ltd was within the ordinary and proper course of business and for the company's benefit, regardless of Mr Ipek's personal means.

Parties
Claimant/appellant: Koza Ltd; Claimant: Hamdi Akin Ipek; Defendant: Mustafa Akcil; Defendant: Hayrullah Dagistan; Defendant: Mahmut Hikmet Keles; Defendant: Hamza Yanik; Defendant: Arif Yalcin; Defendant/respondent: Koza Altin Istemeleri AS
Jurisdiction
England and Wales
Judgment Date
23 May 2019
Procedural Posture
Civil Appeal / Appeal From High Court (chancery Division) to Court of Appeal
Outcome
Appeal allowed in part
Legal Topics
Freezing Injunctions, Corporate Governance, Directors' Duties, Legal Expenses, Jurisdiction
Company Law Civil Procedure Freezing Injunctions Corporate Governance Directors' Duties Legal Expenses Jurisdiction

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Parties

Koza Ltd

Claimant/appellant

Hamdi Akin Ipek

Claimant

Mustafa Akcil

Defendant

Hayrullah Dagistan

Defendant

Mahmut Hikmet Keles

Defendant

Hamza Yanik

Defendant

Arif Yalcin

Defendant

Koza Altin Istemeleri AS

Defendant/respondent

Procedural Posture

Civil Appeal / Appeal From High Court (chancery Division) to Court of Appeal

Legal Issues

  1. 1 Whether proposed funding of ICSID arbitration by Koza Ltd is in the ordinary and proper course of business under a court undertaking
  2. 2 Whether payment of extradition-related legal expenses for Mr Ipek is in the ordinary and proper course of business and for the company's benefit

Ratio Decidendi

The Court of Appeal held that, due to serious doubts about the authenticity of the SPA, it could not grant a positive declaration that the ICSID arbitration funding was in the ordinary and proper course of business, but also that the negative declaration should be discharged; for the extradition expenses, the court found that payment by Koza Ltd was within the ordinary and proper course of business and for the company's benefit, regardless of Mr Ipek's personal means.

Court Disposition

Appeal allowed in part

Orders

  • Negative declaration regarding ICSID funding discharged; no positive declaration granted
  • Positive declarations substituted for negative declarations regarding extradition expenses: payments fall within both paragraphs of the undertaking