An extra territorial extension of Mareva injunction, was considered not only oppressive to the defendant but difficult to enforce as well in that case.
Such was the background when recently the Supreme Court of Cyprus was invited to consider the principles of the territorial scope of the Mareva injunction in the joined appeals of Seamark Consultancy Services Ltd v As a result of a lawsuit filed by the Trustees of the Aremisoft Liquidating Trust, the District Court of Nicosia issued an interim order freezing assets world wide of Lykourgos Kyprianou and persons and companies affiliated with him.
With the disapproval of the restrictive line of authorities by the subsequent English decisions as read above the foundation against “worldwide” Mareva has wording of Section 32 of the Law 14/60 which could cover as a matter of jurisdiction the grant of an injunction of a Mareva nature in respect of assets which are not within the jurisdiction of the Court.
The Appeal judge referred to the principles emerging from the English case law stretching that as fraudulent schemes increasingly involve international dealings, and as the ease with which assets may be transferred abroad increases, the worldwide Mareva order becomes an increasingly invaluable tool which may be used to assist victims of international fraud.
While it appears that English courts had jurisdiction to grant Mareva injuctions over foreign assets it has been the practice to limit such orders and ancillary disclosure orders within the jurisdiction.Further the statutory authority for the court to grant an injunction derives from section 32 of the aforesaid statute which gives wide discretional power to the Court in the exercise of its civil jurisdiction to grant an injunction in all cases in which it appears to the Court just or convenient so to do.Provided that an interlocutory injunction shall not be granted unless the court is satisfied that there is a serious question to be tried at the hearing, that there is a probability that the plaintiff is entitled to relief and that unless an interlocutory injunction is granted it shall be difficult or impossible to do complete justice at a later stage.-the plaintiff should give some grounds for believing that there is a risk of the assets being removed or dissipated before the judgment or award is satisfied or a Mareva injunction is necessary to prevent a fraud on the court or the adversary, concluded that an order in the nature of a Mareva injunction could be made, notwithstanding that the vessel in question was out of the jurisdiction because as the remedy is an equitable one and equity acts in personam, it matters not that the property in the control of the defendants (appellants) was outside the jurisdiction, so long as those to whom the order is addressed can appropriately be restrained horn parting with the properly.bearing in mind the restrictive approach as was then approved in English case law hesitated to stress the jurisdictional limits of the Mareca injuction stating that the same can only be issued with regard to assets within the jurisdiction. It was pointed out that the Court was not able to trace any authority to the effect that a ship outside the jurisdiction but registered and owned by a company registered within the jurisdiction can be the subject of a Mareva injunction.Thinking in concrete terms the positive end of any litigation relates to the assets and the potential enforcement of the judgment being obtained. In synopsis a Mareva injuction is an injunction that freezes assets.Nevertheless, there is always the risk that the defendant will remove his assets from the court’s jurisdiction, By way of introduction it is essential to note that English courts have exercised jurisdiction to grant injunctions, which has come to be called Mareva Injuction, since 1975 named after the well known homonymous decision Mareva Compania Naviera S. It is the unique characteristic of Mareva that it does not operate as an attachment of property, but it is a relief , which restrains the owner of the assets from dealing with them.