Mobile Telecommunications Co KSCP v HRH Prince Hussam Bin Saud Bin Abdulaziz Al Saud
[2023] EWHC 312 (Ch)
HRH Prince Hussam Bin Saud Bin Abdulaziz Al Saud v Mobile Telecommunications Company KSCP
18 May 2023
[2023] EWHC 1144 (Ch)
High Court
A company wants to bankrupt a prince. The prince says he doesn't live in the UK. The judge says, even though he doesn't live there all the time, he had a place he could stay, and that's enough to let the bankruptcy case go forward.
Key Facts
- •MTC presented a bankruptcy petition against HRH Prince Hussam bin Saud bin Abdulaziz Al Saud (Debtor) for debts arising from arbitration awards.
- •The Debtor resides in Saudi Arabia and challenged the court's jurisdiction under section 265 of the Insolvency Act 1986.
- •The key issue is whether the Debtor had a place of residence in England and Wales between 1 June 2019 and 1 June 2022.
- •The Debtor's mother owned an apartment (York House) in London where the Debtor stayed during his studies and occasionally thereafter.
- •The Debtor's use of York House was infrequent in the relevant period due to his appointment as governor in Saudi Arabia and a prison sentence in England.
- •The Debtor was registered for Council Tax at York House until December 2019.
Legal Principles
A bankruptcy petition may be presented if the debtor had a place of residence in England and Wales within three years of the petition.
Insolvency Act 1986, section 265(2)(b)(i)
The standard of proof for service out of jurisdiction is a 'good arguable case', not the balance of probabilities.
Brownlie v Four Seasons Holdings Inc. [2017] UKSC 80
Having a place of residence is a de facto situation, not solely a matter of legal right.
Skjevesland v Geveran Trading Co Ltd (No 4) [2003] BCC 391; In re Brauch [1978] Ch 316
A moral claim to premises may be sufficient for establishing a place of residence.
Skjevesland v Geveran Trading Co Ltd (No 4) [2003] BCC 391
The court must consider all the facts and circumstances to determine whether a debtor had a place of residence.
In re Brauch [1978] Ch 316; various subsequent cases
The concept of 'place of residence' requires a degree of permanence, continuity, or expectation of continuity.
Lakatamia Shipping Co Ltd v Su [2021] Bus LR 1285
Outcomes
The 2022 Set Aside Application was dismissed.
The court found that MTC had established a good arguable case that the Debtor had a place of residence in England and Wales during the relevant period, based on his long-standing connection with York House and ongoing permission to use it, despite infrequent stays.
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