Eastern European Engineering Ltd v Vijay Construction (Proprietary) Ltd

Eastern European Engineering Ltd v Vijay Construction (Proprietary) Ltd

The English court has jurisdiction to grant a worldwide freezing order in support of a foreign arbitral award, but in this case, given the limited connection to England, the primary jurisdiction of Seychelles, the recent discharge of injunctions by the Seychellois courts, and the risk of conflicting orders, this is not an exceptional case justifying worldwide relief. However, a domestic freezing order limited to assets within England and Wales is appropriate as there is a real risk that judgment will go unsatisfied.

Parties
Claimant: Eastern European Engineering Ltd; Defendant: Vijay Construction (Proprietary) Ltd
Jurisdiction
England and Wales
Judgment Date
20 June 2018
Procedural Posture
Arbitration Claim / Application for Worldwide Freezing Order After Arbitral Award and Enforcement Proceedings
Outcome
Worldwide freezing order refused; domestic freezing order granted
Legal Topics
Freezing Orders, Enforcement of Arbitral Awards, Jurisdiction, Comity, Interim Relief
Arbitration Civil Procedure Injunctions Freezing Orders Enforcement of Arbitral Awards Jurisdiction Comity Interim Relief

Case Brief

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Parties

Eastern European Engineering Ltd

Claimant

Vijay Construction (Proprietary) Ltd

Defendant

Procedural Posture

Arbitration Claim / Application for Worldwide Freezing Order After Arbitral Award and Enforcement Proceedings

Legal Issues

  1. 1 Whether the English court has jurisdiction to grant a worldwide freezing order in support of a foreign arbitral award
  2. 2 Whether the discretion to grant a worldwide freezing order should be exercised in this case
  3. 3 Whether a domestic freezing order should be granted

Ratio Decidendi

The English court has jurisdiction to grant a worldwide freezing order in support of a foreign arbitral award, but in this case, given the limited connection to England, the primary jurisdiction of Seychelles, the recent discharge of injunctions by the Seychellois courts, and the risk of conflicting orders, this is not an exceptional case justifying worldwide relief. However, a domestic freezing order limited to assets within England and Wales is appropriate as there is a real risk that judgment will go unsatisfied.

Court Disposition

Worldwide freezing order refused; domestic freezing order granted

Orders

  • Application for worldwide freezing order refused
  • Domestic freezing order granted limited to assets within England and Wales