How does a freezing order work?
A freezing order (formely known as Mareva injunctions) is an interim injunction prohibiting a potential defendant in criminal or civil litigation proceedings from dissipating assets. Typically, such an injunction is sought to preserve a defendant’s assets until a judgment can be obtained.
How long does a freezing order last?
between 7 and 14 days
Freezing orders are generally granted for a period of between 7 and 14 days. After the expiry date, the court convenes again at which time it may choose to extend the order, discharge it, or continue it until trial.
What does order to freeze assets mean?
Asset freezing is a legal process which prevents a defendant whether innocent or guilty (usually an apparent fraudster) to an action from dissipating their assets from beyond the jurisdiction of a court so as to frustrate a potential judgment.
How does a worldwide freezing order work?
What are worldwide freezing orders? A “freezing order” is a type of prohibitory injunction ordered by a court, obtained by one party (the applicant) against another (the respondent) to restrain the respondent from unjustifiably disposing of, or otherwise dealing with, their own assets.
Is a freezing order an injunction?
A freezing order, also known as Mareva injunction, is a type of interlocutory injunction which prevents a defendant/respondent from dealing with the whole or part of their assets (i.e. by moving assets abroad or dissipating them) while legal proceedings are ongoing.
What is required for a freezing injunction?
To obtain a freezing order, the applicant must establish a good arguable case on the merits. This is the common requirement for cases where the judgment has not yet been awarded. The ‘good arguable case’ test was subject to a comprehensive review by the courts in the context of jurisdictional gateways.
What happens when your assets are frozen?
As noted above, a frozen account means you won’t have access to any of your money until the situation is resolved. This means you can’t take out any money and scheduled payments won’t go through. And because these payments will bounce, you’ll probably incur a non-sufficient funds (NSF) charge.
What happens when someone’s assets are frozen?
Freezing the assets means that major changes like transfers, removal of funds, closing the account cannot take place. If these violations occur, the responsible party can be held in contempt of court and the entire account placed under court control to prohibit any further mishandling of funds.
What does it mean to freeze a property?
If someone in authority freezes something such as a bank account, fund, or property, they obtain a legal order which states that it cannot be used or sold for a particular period of time.
What is Mareva injunction in law?
MEANING OF MAREVA INJUNCTION Mareva injunction A.K.A Freezing order is a form of injunctive order that prevents the dissipating or dealing with the properties (pending the determination of a dispute) that could render the judgment of a court or the resolution of that dispute nugatory.
What is the meaning interim injunction?
a temporary order given by a court of law which tells someone either to do or not do something until an official decision on the case can been made: to seek/grant/make an interim injunction.
How do you challenge a freezing order?
To succeed in discharging the freezing order you must have good arguments that the claimant did not comply with its obligations (e.g. the duty of full and frank disclosure and the delay in seeking the order or pursuing the claim), that there is no good arguable case against you and/or no real risk of dissipation of …
What is a freezing order called?
Also found in: Dictionary . a court order which restrains someone from removing or dealing with their assets. This can be by way of an interim order and is referred to as a ‘freezing injunction’.
What are the assets subject to a freezing order?
The freezing order may set out certain assets which are subject to the order. This may include a list of property assets, interests in shares etc. However, just because an asset is not specifically mentioned in the order does not mean that the asset is outside the scope of the order. The standard form definition of assets includes:
What is a freezing order or injunction?
Freezing Orders (also called Injunctions) are a legal means of preventing the sale of any assets and are legally enforceable if not adhered to. Generally, the injunction is put in place for a period of time preceding a court judgement. What’s the Purpose of a Freezing Order?
When can a plaintiff apply for a freezing order?
Where it appears as if the defendant is or is intending to remove its assets from the jurisdiction, a plaintiff may apply to the court for a freezing order before, during or even after a proceeding has concluded.