Morris and Others v Mahfouz and Another
| Jurisdiction | England & Wales |
| Judgment Date | 19 November 1993 |
| Date | 19 November 1993 |
| Court | Court of Appeal (Civil Division) |
Court of Appeal
Before Lord Justice Dillon, Lord Justice Nolan and Lord Justice Roch
Mareva injunction - liquidators' undertakings - no new proceedings in other jurisdictions
It was appropriate in the context of Mareva (asset-freezing) injunctions in the BCCI litigation for the liquidators to give an undertaking that they would not, without the leave of the court, commence new proceedings based on the same or similar subject matter in another jurisdiction.
The Court of Appeal so held in a reserved judgment in allowing in part an appeal brought by Sheikh Khalid Salem bin Mahfuoz and Mr Haroun Raschid Kahlon against a judgment of Mr Justice Rattee on July 30, 1993 ordering that previous worldwide Mareva injunctions should remain in force until the trial of the action or further order.
Mr David A S Richards, QC, Mr Matthew Collings and Mr Richard Morgan for Sheikh Mahfouz; Mr William Stubbs, QC, Mr Stephen Smith and Mr Ian Peacock for Mr Kahlon; Mr Michael Crystal, QC and Mr Richard M Sheldon for the liquidators.
LORD JUSTICE DILLON said that the continuation of the Mareva injunctions was not disputed; what was in issue was the scope of the undertakings which the liquidators should be required to give to the court.
BCCI SA was a company incorporated in Luxembourg which carried on business in England and elsewhere; it had 47 offices in 13 countries. BCCI Overseas was a company incorporated in the Cayman Islands; it had 63 offices in 28 countries.
BCCI SA was ordered to be compulsorily wound up by the High Court in England on January 14, 1992. It was also in liquidation in Luxembourg under an order of the Luxembourg court of January 3, 1992.
Of the seven applicants in the present proceedings, the first four were liquidators for the purposes of the English winding-up and the other three were liquidators in Luxembourg. Technically, the English winding-up was ancillary to the Luxembourg winding-up and the appointment of English liquidators of BCCI SA by the English court gave them no authority to act on behalf of BCCI SA in any jurisdiction other than England and Wales.
BCCI Overseas was ordered to be compulsorily wound up by order of the Cayman Islands court on January 14, 1992.
Because of the manner in which the affairs of BCCI SA and BCCI Overseas were run by the managements before liquidation, a pooling agreement had been entered into and been approved by the courts in England...
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