NMC Healthcare Ltd & Ors v Shetty & Ors (Rev1) [2023] ADGMCFI 0024 (29 December 2023)

NMC Healthcare Ltd & Ors v Shetty & Ors (Rev1) [2023] ADGMCFI 0024 (29 December 2023)

The application to stay or restrain the ADGM proceedings is refused. The interests of justice do not support restraining the ADGM proceedings in favour of the English proceedings. The overlap between the cases is substantial, but the arguments advanced for restraint—scope, risk of criminal charges, preliminary issues, disclosure, forum, and costs—do not outweigh the public policy of the UAE, the procedural posture, and the ability of the ADGM Court to manage its own proceedings. The risk of disruption from potential criminal charges is a matter of UAE public policy, which the ADGM Court should not circumvent by facilitating the English proceedings. The existence of preliminary issues and...

Citation
[2023] ADGMCFI 0024
Parties
Claimant/applicant: NMC Healthcare Limited (in administration) (subject to a deed of company arrangement); Claimant/applicant: NMC Holding Limited (in administration); Claimant/applicant: Richard Dixon Fleming (in his capacity as Joint Administrator of the First and Second Claimants/Applicants); Claimant/applicant: Benjamin Thom Cairns (in his capacity as Joint Administrator of the First and Second Claimants/Applicants); Defendant/respondent: Bavaguthu Raghuram Shetty; Defendant/respondent: Prasanth Manghat; Defendant/respondent: Bank of Baroda
Jurisdiction
United Arab Emirates
Judgment Date
29 December 2023
Procedural Posture
Commercial and Civil (parallel Proceedings, Insolvency, Fraud) / Interlocutory Application for Stay/restraint of Proceedings (shetty Restraint Application)
Outcome
Application for stay/restraint of ADGM proceedings refused.
Legal Topics
Parallel Proceedings, Case Management Stay, Fraudulent Trading, Wrongful Trading, Breach of Duty, Disclosure, Public Policy, Issue Estoppel, Jurisdiction, Confidentiality
Insolvency Commercial Law Civil Procedure Conflict of Laws Parallel Proceedings Case Management Stay Fraudulent Trading Wrongful Trading +6 more

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Parties

NMC Healthcare Limited (in administration) (subject to a deed of company arrangement)

Claimant/applicant

NMC Holding Limited (in administration)

Claimant/applicant

Richard Dixon Fleming (in his capacity as Joint Administrator of the First and Second Claimants/Applicants)

Claimant/applicant

Benjamin Thom Cairns (in his capacity as Joint Administrator of the First and Second Claimants/Applicants)

Claimant/applicant

Bavaguthu Raghuram Shetty

Defendant/respondent

Prasanth Manghat

Defendant/respondent

Bank of Baroda

Defendant/respondent

Procedural Posture

Commercial and Civil (parallel Proceedings, Insolvency, Fraud) / Interlocutory Application for Stay/restraint of Proceedings (shetty Restraint Application)

Legal Issues

  1. 1 Whether ADGM proceedings should be stayed or restrained pending resolution of parallel English High Court proceedings involving substantially similar parties and issues
  2. 2 Whether UAE public policy regarding the stay of civil proceedings pending criminal proceedings applies to the ADGM Court and affects the order of proceedings
  3. 3 Whether the existence of potential preliminary issues, disclosure regimes, or forum considerations justify restraining the ADGM proceedings

Ratio Decidendi

The application to stay or restrain the ADGM proceedings is refused. The interests of justice do not support restraining the ADGM proceedings in favour of the English proceedings. The overlap between the cases is substantial, but the arguments advanced for restraint—scope, risk of criminal charges, preliminary issues, disclosure, forum, and costs—do not outweigh the public policy of the UAE, the procedural posture, and the ability of the ADGM Court to manage its own proceedings. The risk of disruption from potential criminal charges is a matter of UAE public policy, which the ADGM Court should not circumvent by facilitating the English proceedings. The existence of preliminary issues and...

Court Disposition

Application for stay/restraint of ADGM proceedings refused.

Orders

  • The Shetty Restraint Application is refused.
  • Costs of the proceedings and any consequential matters to be determined at a consequentials hearing to be fixed by the Court.