SOCAR wins procedural ruling in asset recovery dispute

The High Court of Justice, Commercial Court, has addressed a procedural dispute involving the State Oil Company of the Republic of Azerbaijan (SOCAR) and three affiliated companies against Mubariz Mansimov and five related entities. The case involves allegations that the defendants engaged in corporate restructurings to move assets out of reach of creditors following two London-seated arbitral awards.

The court ruled that SOCAR and its affiliates have a real prospect of succeeding in claims under section 423 of the Insolvency Act 1986 and a related unlawful means conspiracy claim. Consequently, the court allowed these claims to be served outside England and Wales. However, the court set aside the order regarding the ‘Marex claim’ and parts of the conspiracy claim relying on it, because the alleged asset transfers occurred before any relevant arbitral award was in place or imminent.

The judgment does not determine whether the defendants improperly transferred assets or if SOCAR will ultimately succeed, but rather establishes that the section 423 and conspiracy claims are sufficiently substantial and connected to England to be tried there.