JCA BTA Bank v Ablyazov & Ors
2014
COMMERCIAL COURT
United Kingdom
CORAM
- MR. JUSTICE TEARE
Areas of Law
- Conflict of Laws
- Civil Procedure
- Evidence Law
- Corporate Law
2014
COMMERCIAL COURT
United Kingdom
CORAM
AI Generated Summary
In an application by the Bank, the court declared Mr. Ablyazov the beneficial owner of Rocklane Properties shares based on both historical evidence and newly disclosed documents. Despite previously failing to meet the criminal standard of proof in contempt proceedings, the Bank successfully argued that the civil standard of proof applied here. The court rejected the argument that the Bank was barred by res judicata from raising the issue again, citing new material evidence and the difference in legal standards. The case also clarified legal principles regarding standard of proof, issue estoppel, and the distinction between control and beneficial ownership.
Judgment
Mr. Justice Teare :
This is an application by the Bank for a declaration that Mr. Ablyazov is “the beneficial owner of the property known as Flat 79, Elizabeth Court, 1 Palgrave Gardens, London NW1 6EJ (“Elizabeth Court”) and the entirety of the issued share capital in Rocklane Properties, a company incorporated in the British Virgin Islands.” The Bank wishes to enforce the judgments it has obtained against Mr. Ablyazov (see JSC BTA Bank v Ablyazov and others [2013] EWHC 510 (Comm) ) on those assets.
Mr. Ablyazov has not appeared on the hearing of this application. His solicitors, Addleshaw Goddard, were notified of this application on 4 February 2014 and of the hearing date. By letter dated 7 February 2014 Addleshaw Goddard said that their client was not the owner of 79 Elizabeth Court and therefore the recovery and sale of the property did not concern him. However, they said he had a full interest in the matter to the extent that the Bank sought costs against him. By letter dated 10 February 2014 the Bank said that it would not be seeking a costs order against Mr. Abyazov. In the result there was no appearance on behalf of Mr. Ablyazov at the hearing although a representative of Addleshaw Goddard attended the hearing.
Mr. Terenov has also not appeared on the hearing of this application. He had caused Rocklane Properties to issue an application on 21 March 2013 seeking an order that the flat be removed from the Freezing Order, supported by evidence that he was the “ultimate beneficial owner” of the flat and that the shares in Rocklane Properties, the registered owner of the flat, were held on his behalf. But on 13 December 2013 he consented to an order staying his application, having sworn an affidavit in which he stated that “the truth is that I do not own and have never owned Elizabeth Court or Rocklane and the account I provided in support of the Release Application was untrue.”
When seeking an order that Mr. Ablyazov be committed to prison for contempt of court in late 2011 the Bank had submitted that Mr. Ablyazov was the true beneficial owner of the shares in Rocklane Properties and was the UBO (“ultimate beneficial owner”) of the flat of which Rocklane Properties was the registered owner. This was denied by Mr. Ablyazov. Mr. Ablyazov’s case on the contempt application was supported by the evidence of the brothers Syrym and Salim Shalabeyev. Syrym gave evidence (in paragraphs 64 – 67 of his first affidavit dated 16 October 2011) that