Celestial Aviation Trading Ireland Limited & Ors v Volga-Dnepr Logistics B.V.

Celestial Aviation Trading Ireland Limited & Ors v Volga-Dnepr Logistics B.V.

The Defendant failed to establish that the court overlooked the effect of sanctions or that there was a material change of circumstances since the interim payment order was made. The risk of breaching sanctions is only one factor and does not require variation of the order. The Defendant delayed in seeking licences and making the application. The only available funds are subject to Dutch court control and will not be released without the necessary licences, so there is no realistic risk of sanctions breach or contempt. The application to vary the interim payment order is dismissed.

Parties
Claimant: Celestial Aviation Trading Ireland Limited; Claimant: Celestial Aviation Trading 27 Limited; Claimant: Celestial Aviation Trading 6 Limited; Claimant: Celestial Aviation Trading 23 Limited; Defendant: Volga-Dnepr Logistics B.V.
Jurisdiction
England and Wales
Judgment Date
13 May 2025
Procedural Posture
Commercial / Ruling on Application to Vary Interim Payment Order
Outcome
Application dismissed
Legal Topics
Interim Payments, Sanctions Compliance, Variation of Court Orders, Aircraft Leasing, Guarantees
Commercial Law Sanctions Law Civil Procedure Interim Payments Sanctions Compliance Variation of Court Orders Aircraft Leasing Guarantees

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Parties

Celestial Aviation Trading Ireland Limited

Claimant

Celestial Aviation Trading 27 Limited

Claimant

Celestial Aviation Trading 6 Limited

Claimant

Celestial Aviation Trading 23 Limited

Claimant

Volga-Dnepr Logistics B.V.

Defendant

Procedural Posture

Commercial / Ruling on Application to Vary Interim Payment Order

Legal Issues

  1. 1 Whether the interim payment order should be varied to defer payment obligations until sanctions licences are obtained
  2. 2 Whether compliance with the interim payment order would breach UK or US sanctions
  3. 3 Whether the court overlooked sanctions issues when making the original order

Ratio Decidendi

The Defendant failed to establish that the court overlooked the effect of sanctions or that there was a material change of circumstances since the interim payment order was made. The risk of breaching sanctions is only one factor and does not require variation of the order. The Defendant delayed in seeking licences and making the application. The only available funds are subject to Dutch court control and will not be released without the necessary licences, so there is no realistic risk of sanctions breach or contempt. The application to vary the interim payment order is dismissed.

Court Disposition

Application dismissed

Orders

  • Defendant's application to vary the interim payment order is refused
  • Parties to provide a final order reflecting the judgment for approval