Freezing Orders/Injunctions obtained in a civil court have the wide-reaching power to restrain assets such as bank accounts, shares, property and vehicles and are frequently sought in litigation to prevent the sale of such assets, and the subsequent dissipation of the proceeds of such sale, pending the outcome of litigation.

Tim Thompson of Kangs Solicitors comments generally upon financial restraint Orders and, specifically, an interesting recent development where a company which had been dissolved was allowed to seek such an Order. 

Freezing Orders | Requirements | Kangs Restraint Orders Team

Freezing Orders are available to companies, businesses and individuals, the key requirements being:        

  1. a good arguable case to support the Application,  
  2. the reasonable belief that the proposed defendant has assets (or an interest in assets) which can be frozen,
  3. a real risk of the assets being improperly dissipated,
  4. sufficient overall evidence for a court to be persuaded that it is just and appropriate to make such an Order.   

Interesting Recent Court Decision | Kangs Insolvency Solicitors

  • In Yuzu Hair and Beauty Ltd (Dissolved) v Selvathiraviam [2019] (‘the company’) the Court, using section 37 of the Senior Courts Act 1981, ordered the continuation of a Freezing Injunction obtained prior to its dissolution.
  • The company had previously applied to the High Court for a Freezing Injunction against its accountant, which was granted whilst litigation was pending.
  • As the result of fraudulent conduct on the part of the accountant, the company was struck off the Companies House Register.
  • The company applied for the Freezing Order to continue despite it having been dissolved and thus having ceased to exist.
  • Pursuant to s.1029 of the Companies Act 2006, a director and shareholder of the company applied to have the company restored to the Companies House Register.
  • The application to re-instate remained pending.  However, this proactive step proved paramount in the Court subsequently deciding to grant permission for the continuation of the Freezing Injunction.

How Can We Help? | Kangs High Court Civil Litigation Solicitors

The team at Kangs Solicitors has extensive experience in both applying for and defending Restraint Orders on behalf of both corporate and private clients.

If you require any assistance involving civil disputes of any nature please do not hesitate to speak to our Team who will be happy to assist:

Stuart Southall | Head of Dispute Resolution
0121 449 9888 | 020 7936 6396

Tim Thompson
020 7936 6396 | 0121 449 9888

Naz Maqsoom
0121 449 9888 | 020 7936 6396