United Bank Ltd. v. Claybridge S.A. - Lord Denning, M.R. and Lord Justice Donaldson - C.A. - May 23, 1980

Mareva injunction continued during currency of winding-up proceedings

The plaintiffs claimed $42 million against the defendants (a company registered in Panama not carrying on business within the jurisdiction) said to be due to the plaintiffs upon an overdraft repayable on demand. On Apr. 28, 1980 the Court of Appeal (Lord Denning, M.R., Lord Justices Templeman and Watkins) granted a Mareva injunction against the defendants without permission to the defendants to pay debts incurred in the ordinary course of business pending application by the plaintiffs to the Companies Court to wind-up the defendants (see Issue No. 14 LMLN). The plaintiffs duly applied to the Companies Court pursuant to undertakings given to the Court of Appeal seeking the appointment of a provisional liquidator of the defendants under s.238 Companies Act 1948. The plaintiffs were unsuccessful in their application to the Companies Court because inter alia the plaintiffs’ claim was in dispute.