Aiman Meqham Almeqham v Maan Bin Abdul Wahed Al-Sanea & Ors

Recognition of foreign insolvency proceedings under the Cross-Border Insolvency Regulations 2006 does not itself vest rights in English land in the foreign representative. Such rights may be obtained through an order under article 21, subject to the statutory safeguards.

A foreign representative without a present proprietary interest cannot ordinarily bring hostile proprietary proceedings merely to establish the debtor’s beneficial ownership where an article 21 application could first confer the necessary standing. A section 423 claim may proceed where it concerns English immovable property and the pleaded facts disclose a serious issue to be tried, a sufficient connection with England and England as the clearly and distinctly appropriate forum.

A service address provided under the Economic Crime (Transparency and Enforcement) Act 2022 may be used to serve legal proceedings.

The claimant, liquidation trustee of Mr Al-Sanea and STCFSC appointed in Saudi Arabia, obtained recognition of the Saudi insolvency proceedings under the Cross-Border Insolvency Regulations 2006. He brought claims concerning 19 English properties transferred to offshore companies in 2012.

The claimant sought declarations that the properties were held on resulting or constructive trust and, alternatively, relief under section 423 of the Insolvency Act 1986. The defendants challenged service out, continuation of a proprietary injunction, the pleading, and the claimant’s standing. The claimant also sought amendments and substituted service on the first defendant.

The central issues were whether recognition alone gave the claimant rights in English land, whether the claims satisfied the jurisdictional requirements, and whether service at addresses registered under the 2022 Act was valid.

1. Jurisdiction and standing. The claimant had to establish a serious issue to be tried, a good arguable case under a jurisdictional gateway and England as the clearly and distinctly most appropriate forum.
2. Following and explaining Kireeva v Bedzhamov [2024] UKSC 39, recognition under article 17 produces the automatic effects in article 20 and empowers the court to grant assistance under article 21. It does not itself transfer rights or interests in English land to a foreign representative. Article 21 relief may entrust administration, realisation or distribution of English assets, including interests in land, and may give standing to bring proceedings concerning the debtor’s rights.
3. The Trust Claim disclosed no serious issue to be tried because the claimant had no present proprietary interest and had obtained no article 21 relief. The appropriate course was to seek article 21 relief first, with the safeguards in articles 21 and 22. The defect was substantive, not a formal defect curable under Schedule 2, paragraph 57.
4. The section 423 claim was different. The pleaded case sufficiently identified Mr Al-Sanea as the debtor, the 2012 transfers as the transactions, and the alleged purpose of putting assets beyond creditors’ reach. The absence of Markant and Saad Inc as parties did not prevent a serious issue to be tried. The English properties supplied a sufficient connection with England, and England was clearly and distinctly the most appropriate forum.
5. The service-out challenge therefore succeeded for the Trust Claim but failed for the section 423 claim. The Trust Claim was struck out, while the section 423 claim continued.
6. A service address supplied under Part 1 of the Economic Crime (Transparency and Enforcement) Act 2022 is an address at which documents, including proceedings and applications, may effectively be served. The claims had therefore been validly served within the jurisdiction.
7. The proprietary injunction was continued in support of the section 423 claim and could also support an urgent article 21 application. Amendments concerning further evidence of control were permitted; the amendment intended to cure the Trust Claim’s standing defect was refused. Substituted service on Mr Al-Sanea was ordered.