JSC BTA BANK V ABLYAZOV

[2012] EWHC 1819 (Comm), Queen's Bench Division, Commercial Court, Mr Justice Christopher Clarke, 4 July 2012

Freezing injunction - Defendant borrowing money to pay legal fees - Whether right to borrow within freezing injunction.

A freezing order which prevents the defendant from disposing of, dealing with or otherwise diminishing the value of his assets other than in the ordinary and proper course of his business did not extend to preventing the defendant from borrowing money to fund his legal expenses. On the assumption that the loans were genuine and not sham loans from companies controlled by the defendant, incurring new liabilities by borrowing money from third parties did not affect the defendant's existing assets falling within the freezing order. The right to draw down on loans was not within the freezing order, as it was to be construed as applying only to assets which could be of some value to the claimant, so that it did not encompass an asset which allowed the defendant to increase his indebtedness.