Source: All England Reporter
Publisher Citation: [2016] All ER (D) 15 (Aug)
Neutral Citation: [2016] EWCA Civ 788
Court: Court of Appeal, Civil Division
Judge:

Moore-Bick VP, Longmore and Macur LJJ

Representation Alan Maclean QC (instructed by Paul Hastings (Europe) LLP) for M.
  Jonathan Swift QC and Adam Al-Attar (instructed by Hogan Lovells International LLP) for LIA.
Judgment Dates: 27 July 2016

Catchwords

Insolvency - Statutory demand - Setting aside statutory demand - Applicant being guarantor to loan made by respondent - Respondent being made subject of sanctions imposed by United Nations Security Council and adopted by European Council - Sanctions being eased following regime change in Libya - Applicant successfully applying to set aside statutory demand served on him by respondent - Whether applicant being precluded by sanctions regime from paying under guarantee - Whether statutory demand constituting 'claim' for purposes of sanctions regime - Insolvency Rules 1986, - , , , , - Council Regulation (EU) 965/2011, art 5(4) - United Nations Security Council Resolution 1970 (2011), paras 17, 20.

The Case

Insolvency Statutory demand. The Court of Appeal, Civil Division, allowed an appeal against the setting aside of a statutory demand. The payment of a guarantee, sought by the demand, would not have been in breach of freezing orders imposed by way of sanctions against Libya under United Nations Security Council Resolutions or the European Regulations adopted to give those Resolutions effect in Europe.

Practice Areas

If you are a LexisLibrary subscriber you can read more about this case here.