Spencer West Secures landmark judgment in high-profile international bankruptcy case

Chief Insolvency Court Judge Briggs of the Business and Property Courts in London dismissed a $1.2 billion bankruptcy petition filed by Mobile Telecommunications Company KSCP (MTC), a Kuwaiti telecoms firm.

Background of the Case

The legal battle stemmed from an alleged debt dispute that dates back to 2010. MTC sought to enforce an outstanding debt that had accumulated over time due to interest and default commissions, eventually totaling over $1.2 billion. The central issue in the case was whether an English court had jurisdiction to declare Prince Hussam bankrupt, considering whether he had a “place of residence” in England during the relevant period as required by Section 265(2)(b)(i) of the Insolvency Act 1986.

MTC had previously secured arbitral awards in 2015-2018, with a significant award of approximately £703 million for the alleged debt. However, Prince Hussam denied both the existence of the debt and the court’s jurisdiction to hear the petition. He argued that he did not meet the residency requirements and that the debt was statute-barred, thus ineligible to support the petition.

The Court's Ruling

The case was heavily scrutinized, with the jurisdictional issue being considered by five judges in the High Court, who initially sided with MTC’s claim. However, after a rigorous five-day hearing in December 2024, Judge Briggs delivered a reserved judgment on 22 January 2025, ruling in favor of Prince Hussam and dismissing the bankruptcy petition.

In his judgment, the judge found that MTC had failed to present adequate evidence proving that Prince Hussam had a place of residence in England and Wales during the relevant period. This ruling effectively closed the door on the bankruptcy claim, highlighting the importance of jurisdictional clarity in international disputes, particularly those involving complex issues of insolvency law.

Strategic Legal Representation

Amrit Johal, Partner at Spencer West, led the legal team representing Prince Hussam. Johal and his team meticulously dismantled MTC’s case, utilizing a strategic approach that addressed various hurdles, including questions around Prince Hussam’s travel to England for live evidence, potential conflicts of interest in the arbitral process, and the fairness of MTC’s legal actions.

“This ruling is a significant achievement in shielding our client from an unjust and inflated bankruptcy claim,” said Amrit Johal. “Prince Hussam demonstrated great patience and resolve throughout this case, and it is a privilege to have helped secure this outcome.”

The judgment is viewed as a precedent for future cases involving international jurisdictional challenges, especially within arbitration and insolvency law. The decision reinforces the importance of careful legal strategy in navigating complex international disputes, especially when it comes to jurisdiction and cross-border litigation.

Global Implications

The case has drawn considerable attention on the international stage, reflecting the global nature of modern disputes. This ruling is expected to impact similar cases involving jurisdictional issues in cross-border insolvency and arbitration, especially those involving high-profile individuals and entities. It also underscores the critical role of legal experts in ensuring that the rights of individuals, particularly those in positions of international prominence, are rigorously protected.