Power of the Court to Order the Continuation of a Mareva Injunction and Receivership Post Judgment, in Aid of Execution

 

CYPRUS: Power of the Court to Order the Continuation of a Mareva Injunction and Receivership Post Judgment, in Aid of Execution

 

Under Cyprus Law, any interim order or interim relief granted in the context of an action, Originating Summons or petition, remains in force until the date of issue of a final decision on the merits of such proceedings.

 

In the case RCB Bank ltd -v- Igor Bakay & Others (2017), the District Court of Limassol, relying on the appellate case Limnare Shipping Co Ltd -v- Mounir Boustani (1981) 1 CLR 386, decided to extend post judgment, the validity of mareva injunctions and of an interim Receivership, until the final execution of the final judgment, which was about to be issued in the above action.

 

The Linmare Shipping Co. Ltd v. Mounir Boustani (Supra) was an Admiralty case, and in the context of which the Plaintiff had previously succeeded in getting a Mareva Injunction restraining the defendant from taking its assets outside of jurisdiction. The counsel of the Plaintiff in the course of his address during the final hearing of the case and before the issue of the final judgment applied orally for the issued Mareva Injunctions, to remain in force post judgment in aid of execution.

 

In assessing the request of the Plaintiff for continuation of the Mareva Injunction post judgment, the Supreme Court (in its admiralty jurisdiction), relied on the English case of Stewart Chartering v C. & O. Managements [1980] 1 All ER 718 and granted such request for extension of the validity of the injunctions post judgment, by adopting inter alia the following passage:.

 

"[……] If the plaintiffs were unable to obtain a judgment in the present case without abandoning their Mareva injunction, it would be open to a defendant to defeat the very purpose of the proceedings simply by declining to enter an appearance. Such conduct would be an abuse of the process of the Court; and in my judgment the Court has power to take the necessary steps, by virtue of its inherent jurisdiction, to prevent any such abuse of its process. The appropriate action to be taken by the Court in such circumstances is, in my judgment to grant leave to the plaintiffs, in an appropriate case, to enter judgment in default of appearance, notwithstanding that the writ is indorsed with a claim for an injunction. If the Court so acts, it can also order that the Mareva injunction continue in force after the judgment, in aid of execution. The purpose of a Mareva injunction is to prevent a defendant from removing his assets from the jurisdiction so as to prevent the plaintiff from obtaining the fruits of his judgment; from this it follows that the policy underlying the Mareva injunction can only be given effect to if the Court has power to continue the Mareva injunction after judgment, in aid of execution. [….]".

(emphasis added)

 

Based on inter alia the above passage, the Cypriot Supreme Court held that leaving it open to the defendant to defeat the very purpose for which the injunction was granted, would be an abuse of the process of the Court, and for this reason the Court, in the course of exercising its inherent jurisdiction to control its own process, ordered for the Mareva Injunction to remain in force post judgment in aid of execution.

 

It should be noted that a request for the continuation of a Mareva Injunction post judgment in aid of execution, can be made by the Applicant orally in Court, but has to be made before the Court issues the judgment. This is because, according to the case of Ioannou v Manoli (1998) 1 AAD 1423, if the Court intends for the prohibitive injunctions to remain in force after the judgment is issued, it has to explicitly state it in its final judgment.

 

 

 

 

For further information on this topic please contact

Mr. Kyriakos Pittas( kpittas@pittaslegal.com ) at SOTERIS PITTAS & CO LLC,

by telephone (+357 25 028460) or by fax (+357 25 028461)

 

 

The content of this article is intended to provide a general guide to the subject matter. Specialist advise should be sought about your specific circumstances.

PUBLICATIONS 2020

English Guidance on which companies can be conside...
17 Dec 2020 10:05

  CYPRUS: English Guidance on which companies can be considered as “quasi partnerships”.    [ ... ]

read more
English Guidance on the grounds of winding up of c...
02 Dec 2020 08:12

  CYPRUS: English Guidance on the grounds of winding up of companies on the just and equitable bas [ ... ]

read more
Locus standing of shareholder to petition the wind...
29 Oct 2020 10:07

  CYPRUS: Locus standing of shareholder to petition the winding up of his company, on the Just &am [ ... ]

read more
BILATERAL AGREEMENT BETWEEN CYPRUS AND THE UNITED ...
15 Sep 2020 08:53

  CYPRUS: BILATERAL AGREEMENT BETWEEN CYPRUS AND THE UNITED STATES   The Cyprus Tax Department  [ ... ]

read more
ENGLISH GUIDANCE ON THE OBLIGATION OF A PARENT COM...
10 Sep 2020 12:07

  CYPRUS: ENGLISH GUIDANCE ON THE OBLIGATION OF A PARENT COMPANY TO DISCLOSE DOCUMENTS OF IT’S S [ ... ]

read more
Cyber Libel or Defamation committed through the In...
28 Jul 2020 07:35

  Cyprus: Cyber Libel or Defamation committed through the Internet and jurisdiction of Cypriot Cou [ ... ]

read more
Enforcement of Arbitral Award – Are the criteria o...
10 Jul 2020 08:19

  Cyprus: Enforcement of Arbitral Award – Are the criteria of Article IV of New York Convention  [ ... ]

read more
The Bilateral Treaty between Russia-Cyprus does no...
01 Jul 2020 13:53

  CYPRUS: The Bilateral Treaty between Russia-Cyprus does not give jurisdiction to Cypriot Courts  [ ... ]

read more
Corporate Measures undertaken by the government in...
23 Jun 2020 11:51

  Cyprus: Corporate Measures undertaken by the government in response to COVID-19   As part of  [ ... ]

read more
Cypriot Courts do not have jurisdiction to adjudic...
19 Jun 2020 07:16

  CYPRUS: Cypriot Courts do not have jurisdiction to adjudicate on an application for enforcement  [ ... ]

read more
What will happen to Cyprus Russia Double Tax Treat...
17 Jun 2020 08:47

  Cyprus -Russia. Cyprus Double Tax Treaty   What will happen to Cyprus Russia Double Tax Treat [ ... ]

read more
CYPRUS: English Guidance on the Correct Test to Ap...
04 Jun 2020 09:09

  CYPRUS: English Guidance on the Correct Test to Apply for Existence of Legal Advice Privilege  [ ... ]

read more
Guidance from common Law cases, regarding the requ...
20 May 2020 06:40

  CYPRUS: Guidance from common Law cases, regarding the requirements to be met by an Applicant for [ ... ]

read more
Power of the Court to Order the Continuation of a ...
04 May 2020 08:44

  CYPRUS: Power of the Court to Order the Continuation of a Mareva Injunction and Receivership Pos [ ... ]

read more
CYPRUS: Creditors who have locus standi to petitio...
14 Apr 2020 13:48

  CYPRUS: Creditors who have locus standi to petition the winding up of a Cypriot Company   Sec [ ... ]

read more
Soteris Pittas & Co LLC contributes the Cyprus Cha...
06 Apr 2020 13:14Soteris Pittas & Co LLC contributes the Cyprus Chapter for the 12th edition of the Dispute Resolution Review

  Soteris Pittas & Co LLC contributes the Cyprus Chapter for the 12th edition of the Dispute R [ ... ]

read more
Necessary Ingredients for Ascribing Accessory Liab...
05 Mar 2020 13:21

  Cyprus: Necessary Ingredients for Ascribing Accessory Liability to Third Parties for Dishonest A [ ... ]

read more
Cyprus: Attributing the Knowledge of a Person to t...
13 Feb 2020 08:52

  Cyprus: Attributing the Knowledge of a Person to that of the Corporation   On the issue of at [ ... ]

read more
Security for the Loan. Fixed and Floating Charges ...
05 Feb 2020 08:59

  Security for the Loan. Fixed and Floating Charges under Cyprus Law.   Charges under Cyprus la [ ... ]

read more
When a Cypriot Company shall be deemed “insolvent”...
30 Jan 2020 08:02

  CYPRUS: When a Cypriot Company shall be deemed “insolvent”, thus giving jurisdiction to Cypr [ ... ]

read more
More Publications 2020

Subscribe to our Publications

Image
We are dedicated to providing our clients with outstanding, highly personalized, legal representation.
Chrysanthou Mylona 10 
3030 - Limassol, Cyprus
© Soteris Pittas & Co LLC. All Rights Reserved.
Image