The recent Privy Council decision in Sian Participation Corp (In Liquidation) v Halimeda International Ltd[2024] (SPC) has overturned a principle of English law relating to the interaction between a contractual agreement to arbitrate and traditional insolvency measures where a debt is said to be disputed without substantial grounds.

Another groundbreaking judgment from the ADGM Courts in the NMC matter 📢🇦🇪👨🏻⚖️ and another example of the ADGM Courts drawing important parallels between ADGM and English law.

English proceedings re NMC Health Plc are also ongoing. In his judgment at CFI on 8 July 2024, Sir Justice Andrew Smith found that:

1. The ADGM Courts can make an order in respect of the fraudulent carrying on of the business of a company prior to the time at which that company was continued in the ADGM.

Introduction

The recent Supreme Court decision in Bilta (UK) Ltd (in liquidation) and others v Nazir and others has provided office holders with greater (but not final) clarity on the operation of the ‘illegality defence’.

Many readers will be familiar with the concept of the illegality defence, otherwise referred to by the maxim “ex turpi causa non oritur actio”.  It is a rule of law which provides that a claimant cannot rely on its own wrongdoing to found a claim against another party.