China National Star Petroleum Company v. Tor Drilling (UK) Ltd [2002] ScotCS 86 (20th March, 2002)

China National Star Petroleum Company v. Tor Drilling (UK) Ltd [2002] ScotCS 86 (20th March, 2002)

The pursuer, as beneficial owner under a bare trust/nominee relationship, is entitled to ascribe the release of arrestment to accounts (c) and (d), and the defender is obliged to give effect to such ascription. The trust is revocable and constituted solely for the pursuer's purposes, making arrestment of the defender's liability to account to the pursuer incompetent. There is no defence to the pursuer's claim for transfer of the funds at credit of accounts (c) and (d).

Citation
[2002] ScotCS 86
Parties
Pursuer: China National Star Petroleum Company; Defender: Tor Drilling (UK) Limited
Jurisdiction
Scotland
Procedural Posture
Civil / Motion for Summary Decree
Outcome
summary decree granted for pursuer in respect of accounts (c) and (d)
Legal Topics
Arrestment, Bare Trust, Summary Decree, Fiduciary Duty, Ascription of Release, Bank Accounts, Beneficial Ownership
Trusts Contract Civil Procedure Arrestment Bare Trust Summary Decree Fiduciary Duty Ascription of Release +2 more

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Parties

China National Star Petroleum Company

Pursuer

Tor Drilling (UK) Limited

Defender

Procedural Posture

Civil / Motion for Summary Decree

Legal Issues

  1. 1 Whether the pursuer is entitled to summary decree for transfer of funds in accounts (c) and (d) held by the defender as trustee/nominee.
  2. 2 Whether the arrestment by Tor Corporate AS remains effective over accounts (c) and (d) or has been released/ascribed elsewhere.
  3. 3 Whether the trust/nominee relationship precludes arrestment of the defender's obligation to account to the pursuer.

Ratio Decidendi

The pursuer, as beneficial owner under a bare trust/nominee relationship, is entitled to ascribe the release of arrestment to accounts (c) and (d), and the defender is obliged to give effect to such ascription. The trust is revocable and constituted solely for the pursuer's purposes, making arrestment of the defender's liability to account to the pursuer incompetent. There is no defence to the pursuer's claim for transfer of the funds at credit of accounts (c) and (d).

Court Disposition

summary decree granted for pursuer in respect of accounts (c) and (d)

Orders

  • Defender to transfer or instruct the Royal Bank of Scotland to transfer the credit balances on accounts (c) and (d) to a designated account at the Royal Bank's branch at Queens Cross, Aberdeen.