ADGM Court holds that NMC can bring fraudulent and wrongful trading claims retroactively
Another groundbreaking judgment from the ADGM Courts in the NMC matter 📢🇦🇪👨🏻⚖️ and another example of the ADGM Courts drawing important parallels between ADGM and English law.
English proceedings re NMC Health Plc are also ongoing. In his judgment at CFI on 8 July 2024, Sir Justice Andrew Smith found that:
1. The ADGM Courts can make an order in respect of the fraudulent carrying on of the business of a company prior to the time at which that company was continued in the ADGM.
2. The ADGM Courts can make an order in respect of the wrongful carrying on of the business of a company prior to the time at which that company was continued in the ADGM.
3. A claim can be brought in respect of the fraudulent and/or wrongful carrying on of business before the date when the ADGM Insolvency Regulations came into effect.
4. A claim can be brought under section 251 and/or section 252 of the ADGM Insolvency Regulations absent a “sufficient connection” between the defendant and the ADGM (which is a consideration as to exercise of discretion but not a mandatory requirement).
5. Obiter: on the facts, there would be a sufficient connection between the relevant Defendant and the ADGM.
A link to the judgment can be found here https://www.adgm.com/documents/courts/judgments/2024/jul-2024/adgmcfi2022299-2020020--judgment-preliminary-issues-08072024-sealed.pdf
