Judicial Enforcement Mechanics for Arbitral Interim Orders in BVI Commercial Court
BVI Commercial Court enforces arbitral interim orders under Section 81 of the Arbitration Act by converting tribunal directives into binding ECSC orders.
Mareva Freezing Order
Meaning
Court-mandated injunction that prevents a defendant from removing assets from the jurisdiction or disposing of them until a legal dispute is resolved. Global creditors seek a mareva freezing order to ensure that funds remain available to satisfy a eventual judgment. The order functions as a restraint on the owner without granting the claimant a lien over the property.
Worldwide Restriction
Extension of the order can cover assets held in any country if the court has personal jurisdiction over the defendant. This extraterritorial reach is particularly useful in international trade disputes involving mobile capital. Banks across the globe may be notified to stop the transfer of funds from identified accounts.
Disclosure Obligation
Defendants must provide a sworn statement listing all their assets. This list includes property held in their own name.
Asset Preservation
Living expenses and reasonable legal costs are typically excluded from the restriction to allow the defendant to maintain a basic standard of life. The court may vary the terms of the order if the defendant proves that certain transactions are necessary for the ordinary course of business. A bond or other security might be required from the claimant to protect the defendant against loss.