JSC BTA Bank v Ablyazov

JSC BTA Bank v Ablyazov

The Bank established, on the balance of probabilities, that Mr Shalabayev is not the ultimate beneficial owner of Alberts Court and Bensbourogh Trading Inc. The evidence showed that the purchase funds originated from companies beneficially owned by Mr Ablyazov, and Mr Shalabayev’s account was untruthful, unsupported, and implausible. The structure and conduct were consistent with Mr Ablyazov’s use of nominees to conceal assets. Therefore, the assets are beneficially owned by Mr Ablyazov and are available for enforcement of the Bank’s judgments.

Parties
Claimant / Applicant: JSC BTA Bank; First Defendant: Mukhtar Ablyazov; Respondent: Salim Shalabayev; Respondent: Bensbourogh Trading Inc
Jurisdiction
England and Wales
Judgment Date
17 November 2017
Procedural Posture
Commercial / Civil / Trial Following Appellate Direction
Outcome
Judgment for the Claimant / Applicant
Legal Topics
Beneficial Ownership, Enforcement of Judgments, Nominee Arrangements, Asset Tracing, Contempt of Court
Trusts and Equity Civil Procedure Property Law Beneficial Ownership Enforcement of Judgments Nominee Arrangements Asset Tracing Contempt of Court

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Parties

JSC BTA Bank

Claimant / Applicant

Mukhtar Ablyazov

First Defendant

Salim Shalabayev

Respondent

Bensbourogh Trading Inc

Respondent

Procedural Posture

Commercial / Civil / Trial Following Appellate Direction

Legal Issues

  1. 1 Who is the ultimate beneficial owner of 17 Alberts Court and Bensbourogh Trading Inc?
  2. 2 Is Mr Shalabayev the true beneficial owner or a nominee for Mr Ablyazov?
  3. 3 Should a final charging order be made in favour of the Bank over the property?

Ratio Decidendi

The Bank established, on the balance of probabilities, that Mr Shalabayev is not the ultimate beneficial owner of Alberts Court and Bensbourogh Trading Inc. The evidence showed that the purchase funds originated from companies beneficially owned by Mr Ablyazov, and Mr Shalabayev’s account was untruthful, unsupported, and implausible. The structure and conduct were consistent with Mr Ablyazov’s use of nominees to conceal assets. Therefore, the assets are beneficially owned by Mr Ablyazov and are available for enforcement of the Bank’s judgments.

Court Disposition

Judgment for the Claimant / Applicant

Orders

  • Declaration that Mr Shalabayev is not the ultimate beneficial owner of Alberts Court and Bensbourogh Trading Inc.
  • Declaration that Mukhtar Ablyazov is the beneficial owner of Alberts Court and Bensbourogh Trading Inc.