Globe Investment Holdings Limited v (1) Commercial Bank Of Dubai (2) Hortin Holding Limited (3) Lodge Hill Limited (4) Westdene Investment Limited (5) VS 1897 (Cayman) Limited [2023] DIFC CFI 028 (04 July 2023)

Globe Investment Holdings Limited v (1) Commercial Bank Of Dubai (2) Hortin Holding Limited (3) Lodge Hill Limited (4) Westdene Investment Limited (5) VS 1897 (Cayman) Limited [2023] DIFC CFI 028 (04 July 2023)

The DIFC Court has jurisdiction to grant a worldwide freezing order in aid of enforcement of a foreign judgment only against parties who are judgment debtors or non-cause of action defendants in the relevant enforcement proceedings. The court does not have jurisdiction over VS 1897 (Cayman) Limited or Commercial Bank of Dubai as they are not judgment debtors nor parties to the enforcement proceedings. The WFO may be continued against the BVI Companies, who are judgment debtors under the Sharjah judgment and parties to the BVI enforcement proceedings. The applicant failed to establish jurisdiction over VS 1897 and CBD, and the proceedings against them are dismissed.

Citation
[2023] DIFC CFI 028
Parties
Applicant/claimant: Globe Investment Holdings Limited; Respondent/defendant: Commercial Bank Of Dubai; Respondent/defendant: Hortin Holding Limited; Respondent/defendant: Lodge Hill Limited; Respondent/defendant: Westdene Investment Limited; Respondent/defendant: VS 1897 (Cayman) Limited
Jurisdiction
United Arab Emirates
Judgment Date
04 July 2023
Procedural Posture
Freezing Injunction/enforcement of Foreign Judgment / Order on Continuation of Worldwide Freezing Order (wfo) and Jurisdictional Challenge
Outcome
Partial grant and partial dismissal
Legal Topics
Worldwide Freezing Orders, Jurisdiction, Enforcement of Foreign Judgments, Fraud Allegations, Corporate Structure and Control
Civil Procedure International Enforcement Banking and Finance Worldwide Freezing Orders Jurisdiction Enforcement of Foreign Judgments Fraud Allegations Corporate Structure and Control

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Parties

Globe Investment Holdings Limited

Applicant/claimant

Commercial Bank Of Dubai

Respondent/defendant

Hortin Holding Limited

Respondent/defendant

Lodge Hill Limited

Respondent/defendant

Westdene Investment Limited

Respondent/defendant

VS 1897 (Cayman) Limited

Respondent/defendant

Procedural Posture

Freezing Injunction/enforcement of Foreign Judgment / Order on Continuation of Worldwide Freezing Order (wfo) and Jurisdictional Challenge

Legal Issues

  1. 1 Whether the DIFC Court has jurisdiction to grant a worldwide freezing order (WFO) against the Respondents, particularly VS 1897 and CBD, in aid of enforcement of a foreign judgment
  2. 2 Whether the applicant has a good arguable case for enforcement of the Sharjah judgment
  3. 3 Whether there is a real risk of dissipation of assets justifying a WFO

Ratio Decidendi

The DIFC Court has jurisdiction to grant a worldwide freezing order in aid of enforcement of a foreign judgment only against parties who are judgment debtors or non-cause of action defendants in the relevant enforcement proceedings. The court does not have jurisdiction over VS 1897 (Cayman) Limited or Commercial Bank of Dubai as they are not judgment debtors nor parties to the enforcement proceedings. The WFO may be continued against the BVI Companies, who are judgment debtors under the Sharjah judgment and parties to the BVI enforcement proceedings. The applicant failed to establish jurisdiction over VS 1897 and CBD, and the proceedings against them are dismissed.

Court Disposition

Partial grant and partial dismissal

Orders

  • Proceedings against VS 1897 (Cayman) Limited and Commercial Bank of Dubai are dismissed for lack of jurisdiction.
  • The worldwide freezing order is continued against the BVI Companies (Hortin Holding Limited, Lodge Hill Limited, Westdene Investment Limited) as judgment debtors.