Kevin Hellard & Ors v OJSC Rossiysky Kredit Bank (in liquidation) & Ors
[2024] EWHC 1783 (Ch)
Lyubov Andreevna Kireeva v Alina Zolotova & Anor
21 October 2024
[2024] EWHC 2705 (Ch)
High Court
A trustee tried to get ownership of a villa share, but needed to prove she had enough money to fight the case. The court asked for a certificate showing she had the money and how it would be transferred. She provided a certificate, but it was shown to be untrue about how the money would be transferred, meaning the case was thrown out.
Key Facts
- •A Russian-appointed trustee in bankruptcy (Claimant) sought ownership of a share in a company owning an Italian villa.
- •The claim was based on trust allegations or setting aside a share transfer under section 423 of the Insolvency Act 1986.
- •Litigation funding came from Russia, initially from A1, then allegedly from Cezar after US sanctions.
- •A trial adjournment was granted with conditions, including a certificate by 31 August 2024 confirming funding arrangements and a banking route.
- •The certificate was provided on 30 August, stating funding from Raiffeisen Bank (RB), but RB ceased cross-border transfers shortly after.
- •The Defendant challenged the certificate's accuracy, arguing that the funding arrangements and route were not in place.
Legal Principles
An unless order must be complied with; non-compliance may lead to striking out the claim.
Inherent power of the court
A certificate provided under an unless order may be impeached if it lacks good faith or is illusory.
Reiss v Woolf [1952] 2 QB 557
The court has a wide discretion to do what is required in the interests of justice when dealing with breaches of unless orders.
QPS Consultants Ltd v Kruker Tissue (Manufacturing) Ltd 1999 WL 852867
The court can reject written evidence if implausible or inconsistent with other evidence.
Shyam Jewellers Ltd v M Cheeseman [2001] EWCA Civ 1818 and Moloo v Standish Hotels Ltd [2002] All ER (D) 57
Abuse of process may occur when a party uses court procedure unfairly or brings the administration of justice into disrepute.
Hunter v Chief Constable of the West Midlands Police [1882] AC 529
Outcomes
The claim was dismissed.
The certificate was found to be invalid because its assertion of a direct banking route was demonstrably false, and/or because reliance on it constituted an abuse of process.