Following on from the Supreme Court’s pronouncements in Kireeva v Bedzhamov [2024] UKSC 39, HHJ Pelling KC reinforced that English law does not recognise immovable assets as being part of the assets that are within the scope of an individual’s bankruptcy in a foreign jurisdiction.
Despite modern universalism being the principle that is adopted by English law in support of foreign bankruptcy proceedings, the principle is limited in its application and was not engaged on such facts in respect of immovable assets.
The court recognised that, had the principle been engaged in such circumstances, it would have rendered the judgment debtor effectively judgment proof to the extent of their immovable assets in England.
HHJ Pelling KC emphasised that a stay, of the sort sought by the Defendant in this case, should only be granted where the applicant demonstrates “a powerful reason” founded on the interests of justice for departing from the usual course of permitting claims over which it has jurisdiction to be determined on their merits.
Read the full judgment here.
See also:
Kireeva v Bedzhamov [2025] EWHC 1182 (Comm), Case Digest No.1
Servis-Terminal LLC v Drelle [2025] EWCA Civ 62, Case Digest No. 3
