JSC Mezhdunarodniy Promyshlenniy Bank & Anor v Pugachev & Ors

JSC Mezhdunarodniy Promyshlenniy Bank & Anor v Pugachev & Ors

The exceptions in the freezing order for 'trading business' and 'day-to-day expenditure' do not extend to distributions or loans to beneficiaries, nor to the $800,000 payment; they are limited to commercial activity and administrative expenses of the trust.

Parties
Claimant: JSC Mezhdunarodniy Promyshlenniy Bank; Claimant: State Corporation 'Deposit Insurance Agency'; Defendant: Sergei Viktorovich Pugachev; Defendant: KEA Trust Company Limited; Defendant: Finetree Company Limited; Defendant: Bramerton Company Limited; Defendant: Bluering Company Limited; Defendant: Maru Limited; Defendant: Hapori Limited; Defendant: Miharo Limited; Defendant: Arotau Limited; Defendant: Luxury Consulting Limited; Defendant: Victor Sergeyevitch Pugachev
Jurisdiction
England and Wales
Judgment Date
05 November 2015
Procedural Posture
Civil / Interlocutory Judgment on Construction of Freezing Order
Outcome
Application for wider interpretation of freezing order exceptions dismissed.
Legal Topics
Construction of Freezing Orders, Trust Administration, Dispositive Powers, Day to Day Expenditure
Civil Procedure Trusts and Equity Construction of Freezing Orders Trust Administration Dispositive Powers Day to Day Expenditure

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Parties

JSC Mezhdunarodniy Promyshlenniy Bank

Claimant

State Corporation 'Deposit Insurance Agency'

Claimant

Sergei Viktorovich Pugachev

Defendant

KEA Trust Company Limited

Defendant

Finetree Company Limited

Defendant

Bramerton Company Limited

Defendant

Bluering Company Limited

Defendant

Maru Limited

Defendant

Hapori Limited

Defendant

Miharo Limited

Defendant

Arotau Limited

Defendant

Luxury Consulting Limited

Defendant

Victor Sergeyevitch Pugachev

Defendant

Procedural Posture

Civil / Interlocutory Judgment on Construction of Freezing Order

Legal Issues

  1. 1 Interpretation of 'trading business' in freezing order
  2. 2 Scope of 'day-to-day expenditure' under trust administration
  3. 3 Whether distributions or loans to beneficiaries fall within exceptions to freezing order

Ratio Decidendi

The exceptions in the freezing order for 'trading business' and 'day-to-day expenditure' do not extend to distributions or loans to beneficiaries, nor to the $800,000 payment; they are limited to commercial activity and administrative expenses of the trust.

Court Disposition

Application for wider interpretation of freezing order exceptions dismissed.

Orders

  • Trustees may not make distributions or loans to beneficiaries under the exceptions in the freezing order.
  • The $800,000 payment is not permitted as day-to-day expenditure.