Commercial Court orders appointment of receivers over foreign assets to assist enforcement

The Commercial Court has made an order for the appointment of receivers over the foreign assets of two foreign defendants, as well as ancillary orders it considered necessary to render that order effective, to aid enforcement of a London LCIA arbitration award: Cruz City 1 Mauritius Holdings v Unitech Limited & Ors [2014] EWHC 3131 (Comm). Under section 37 of the Senior Courts Act 1981, the High Court has the power to grant an injunction or appoint a receiver in all cases in which it appears to the court to be just and convenient to do so.

Although the decision was made in the context of enforcing an arbitration award, it is clear that the same approach may in appropriate circumstances be taken to enforce an English court judgment. The court noted that, although there needs to be a sufficient connection with the English jurisdiction to justify the making of such an order and to satisfy the requirements of comity, the fact that the order is made with a view to the enforcement of an English judgment or award provides that connection. Click here to read more about the decision on our Arbitration Notes blog.