Law Report: Writ can be served on bank abroad: Polly Peck International plc v Nadir and others - Chancery Division (Mr Justice Knox), 28 July 1992

It was not necessary for a plaintiff, when seeking leave to serve a writ out of the jurisdiction on a defendant as a constructive trustee, pursuant to Order 11, rule 1(1)(t) of the Rules of the Supreme Court, to show that all the acts constituting the alleged constructive trust were committed within the jurisdiction, so long as some of them were.

Mr Justice Knox dismissed an application by the fourth defendant, the Central Bank of the Turkish Republic of Northern Cyprus, to discharge leave to serve a writ on it outside the jurisdiction.

Leave was granted by Mr Justice Millett on 21 October 1991, on the ex parte application of the plaintiff, Polly Peck International plc, acting through its administrators.

David Oliver QC, and Leslie Kosmin (Alsop Wilkinson) for Polly Peck; Philip Heslop QC, and Richard Millett (Theodore Goddard) for the bank.

MR JUSTICE KNOX said that Polly Peck's claims against the bank included a claim based on a constructive trust said to arise out of transactions allegedly in breach of fiduciary duty by the first defendant, Asil Nadir, when chairman and chief executive of Polly Peck.

The issue on which the action against the bank would turn was its actual, imputed or possibly constructive knowledge of any such breaches of duty.

Order 11, rule 1(1) provided that: 'Service of a writ out of the jurisdiction is permissible with the leave of the court if in the action begun by writ . . . (t) the claim is brought for money having been received or for an account or other relief against the defendant as a constructive trustee, and the defendant's alleged liability arises out of acts committed whether by him or otherwise within the jurisdiction'.

The question of construction which arose from that somewhat inelegant piece of prose was whether, as the bank submitted, the paragraph only applied if all the 'acts', including the acquisition of the requisite knowledge by the defendant, upon which the claim to enforce the alleged constructive trust was based, had been committed within the jurisdiction; or whether, as Polly Peck submitted, it sufficed if some, at least, of the acts which gave rise to the claim, not including the acquisition of knowledge, had occurred within the jurisdiction.

There was, unfortunately, a difference of judicial opinion on the question, Mr Justice Millett having adopted the former view in ISC Technologies v Radcliff (unreported, 7 December 1990), and Mr Justice Hoffmann having preferred the latter in ISC Technologies v Guerin (17 March 1992).

His Lordship agreed with Mr Justice Hoffmann that Mr Justice Millett had construed the rule too narrowly. A construction of rule 1(1)(t), which required all the acts constituting the alleged constructive trust to have been committed within the jurisdiction, would empty the paragraph of very nearly all its practical utility, having regard to the prevalance of foreign corporations whose officers were very likely to be resident abroad and, therefore, only likely to acquire the necessary knowledge to establish the claimed constructive trust by events occurring abroad.

Moreover, to include the acquisition of knowledge among 'acts committed whether by him or otherwise within the jurisdiction' involved brutality to the English language on a scale that his Lordship would hesitate to ascribe to the draftsman of the Rules.

News
newsGlobal index has ranked the quality of life for OAPs - but the UK didn't even make it into the top 10
News
people
News
people
News
peopleStella McCartney apologises over controversial Instagram picture
PROMOTED VIDEO
Have you tried new the Independent Digital Edition apps?
News
ebooksAn unforgettable anthology of contemporary reportage
Life and Style
Laid bare: the Good2Go app ensures people have a chance to make their intentions clear about having sex
techCould Good2Go end disputes about sexual consent - without being a passion-killer?
Arts and Entertainment
Richard Burr remains the baker to beat on the Great British Bake Off
tvRichard remains the baker to beat as Chetna begins to flake
News
i100
Sport
footballArsenal 4 Galatasaray 1: Wenger celebrates 18th anniversary in style
Arts and Entertainment
Amazon has added a cautionary warning to Tom and Jerry cartoons on its streaming service
tv
News
people
News
The village was originally named Llansanffraid-ym-Mechain after the Celtic female Saint Brigit, but the name was changed 150 years ago to Llansantffraid – a decision which suggests the incorrect gender of the saint
newsA Welsh town has changed its name - and a prize if you can notice how
Arts and Entertainment
Kristen Scott Thomas in Electra at the Old Vic
theatreReview: Kristin Scott Thomas is magnificent in a five-star performance of ‘Electra’
News
Destructive discourse: Jewish boys look at anti-Semitic graffiti sprayed on to the walls of the synagogue in March 2006, near Tel Aviv
peopleAt the start of Yom Kippur and with anti-Semitism flourishing, one Jew can no longer ignore his identity
Life and Style
Couples who boast about their relationship have been condemned as the most annoying Facebook users
tech
Arts and Entertainment
Hayley Williams performs with Paramore in New York
musicParamore singer says 'Steal Your Girl' is itself stolen from a New Found Glory hit
News
i100
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs General

Volunteer Mentor for people who have offended

This is an unpaid volunteer role. : Belong: We are looking for volunteers who ...

Welsh Speaking German Modern Foreign Languages Teacher

£115 - £130 per day: Randstad Education Cardiff: Full time WLM German Supply T...

Modern Foreign Languages Teacher - French

£100 - £110 per day: Randstad Education Cardiff: Modern Foreign Language Teach...

RE/Humanities, Sittingbourne School

Competitive Salary: Randstad Education Group: We urgently seek an experienced ...

Day In a Page

Italian couples fake UK divorce scam on an ‘industrial scale’

Welcome to Maidenhead, the divorce capital of... Italy

A look at the the legal tourists who exploited our liberal dissolution rules
Tom and Jerry cartoons now carry a 'racial prejudice' warning on Amazon

Tom and Jerry cartoons now carry a 'racial prejudice' warning on Amazon

The vintage series has often been criticised for racial stereotyping
An app for the amorous: Could Good2Go end disputes about sexual consent - without being a passion-killer?

An app for the amorous

Could Good2Go end disputes about sexual consent - without being a passion-killer?
Llansanffraid is now Llansantffraid. Welsh town changes its name, but can you spot the difference?

Llansanffraid is now Llansantffraid

Welsh town changes its name, but can you spot the difference?
Charlotte Riley: At the peak of her powers

Charlotte Riley: At the peak of her powers

After a few early missteps with Chekhov, her acting career has taken her to Hollywood. Next up is a role in the BBC’s gangster drama ‘Peaky Blinders’
She's having a laugh: Britain's female comedians have never had it so good

She's having a laugh

Britain's female comedians have never had it so good, says stand-up Natalie Haynes
Sistine Chapel to ‘sing’ with new LED lights designed to bring Michelangelo’s masterpiece out of the shadows

Let there be light

Sistine Chapel to ‘sing’ with new LEDs designed to bring Michelangelo’s masterpiece out of the shadows
Great British Bake Off, semi-final, review: Richard remains the baker to beat

Tensions rise in Bake Off's pastry week

Richard remains the baker to beat as Chetna begins to flake
Paris Fashion Week, spring/summer 2015: Time travel fashion at Louis Vuitton in Paris

A look to the future

It's time travel fashion at Louis Vuitton in Paris
The 10 best bedspreads

The 10 best bedspreads

Before you up the tog count on your duvet, add an extra layer and a room-changing piece to your bed this autumn
Arsenal vs Galatasaray: Five things we learnt from the Emirates

Arsenal vs Galatasaray

Five things we learnt from the Gunners' Champions League victory at the Emirates
Stuart Lancaster’s long-term deal makes sense – a rarity for a decision taken by the RFU

Lancaster’s long-term deal makes sense – a rarity for a decision taken by the RFU

This deal gives England a head-start to prepare for 2019 World Cup, says Chris Hewett
Ebola outbreak: The children orphaned by the virus – then rejected by surviving relatives over fear of infection

The children orphaned by Ebola...

... then rejected by surviving relatives over fear of infection
Pride: Are censors pandering to homophobia?

Are censors pandering to homophobia?

US film censors have ruled 'Pride' unfit for under-16s, though it contains no sex or violence
The magic of roundabouts

Lords of the rings

Just who are the Roundabout Appreciation Society?