Mobile Telesystems Finance SA v Nomihold Securities Inc [2011] EWCA Civ 1040
Court of Appeal, Civil Division, Ward and Tomlinson LJJ, 1 Sept 2011
Both as a matter of principle and on authority a freezing order granted in aid of enforcement of an arbitration award ought ordinarily to contain an ordinary course of business exception.
Vernon Flynn QC and Tom Smith (instructed by Latham & Watkins Solicitors) for the appellant. Simon Salzedo QC and Tony Singla (instructed by Simmons & Simmons Solicitors) for the respondent.
The appellant, MTSF, was a Luxembourg company which was part of a wider group of telecommunication companies. The immediate parent of MTSF was MTS OJSC, a Russian company. MTSF had been set up purely to secure tax benefits to MTS OJSC. In 2005, the respondent, Nomihold, entered into a sale and purchase agreement with MTSF. After the parties fell out Nomihold began arbitration proceedings in London. It obtained an award in its favour in November 2010, in the sum of about $US208m. It
