23 December, 2014
In recent decisions in the long-running enforcement proceedings in Cruz City 1 Mauritius Holdings (“Cruz City”) v Unitech Limited (“Unitech”) and Others, the English Court has ordered the appointment of receivers over the defendants’ non-UK assets (particularly Unitech’s shareholdings in certain subsidiary companies), to assist Cruz City in enforcing a London-seated LCIA award in its favour. This was notwithstanding the fact that the appointment of the receivers may not be recognized by the courts of the jurisdictions where the subsidiaries were located.
The case is also significant in reaffirming the Court’s commitment to promote the enforcement of arbitration awards, and its willingness to develop its jurisdiction incrementally if necessary to aid companies seeking to enforce awards against assets held by uncooperative defendants through complex, multi-jurisdictional company structures.
However, there are limits to how far the Court will go: in a subsequent decision, it has declined to order freezing relief against the subsidiaries themselves, recognizing that they were not parties to the arbitral award.
For further information, please contact:
Nicholas Peacock, Partner, Herbert Smith Freehills
Alistair Henderson, Partner, Herbert Smith Freehills