Pre Arbitral Interim Remedies in Offshore Joint Venture Disputes
Pre-arbitral interim relief in offshore joint ventures demands immediate freezing orders from incorporation courts to preserve share registers before arbitration.
Proprietary Injunction
Meaning
Judicial asset preservation occurs when a court restrains a defendant from transferring property that the claimant alleges belongs to the estate. A specific type of court order that attaches to property rather than just the person of the defendant. A proprietary injunction is used when a claimant asserts a beneficial interest in assets such as trust funds or stolen money.
It prevents the defendant from dealing with the property as if they were the true owner.
Asset Tracing
Claimants use this order to follow assets through different bank accounts or into new forms of property. Because the proprietary injunction creates a claim against the asset itself, it provides better protection than a standard freezing order if the defendant becomes insolvent. The claimant can recover the specific property before other creditors.
Evidence Standard
To obtain this relief, the applicant must demonstrate a serious issue to be tried regarding their ownership of the asset. The court looks for a causal link between the claimant and the property held by the defendant. This standard ensures that the remedy is only available in cases of genuine property disputes.
Disposal Prevention
The order usually contains strict terms that forbid the sale or mortgage of the disputed property until the trial concludes. Violation of a proprietary injunction constitutes contempt of court and can lead to imprisonment or fines. This deterrent prevents the defendant from frustrating the final judgment by dissipating the subject matter of the claim.