No “hollow win”…! The crucial role of “freezing order”

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No “hollow win”…!

The crucial role of “freezing order”

 

What is “freezing order”?

A freezing order is a court order that prevents the defendant from accessing or dealing with certain assets up to a specified amount. It stops the defendant from moving the assets or funds overseas or transferring them to other parties.

A freezing order is a court order that stops the defendant from using or handling specific assets up to a certain claimed amount. It prevents the defendant from moving assets and funds abroad or transferring them to other entities.

3 things that you should be aware of applying a freezing order

If you are considering applying for a freezing order in your case, it is important to keep the following principles in mind:

  1. The burden of proof: The responsibility lies with the plaintiff to demonstrate that the requirements of the rule are met and that they are entitled to the relief sought.
  2. Preventing abuse of the court process: The purpose of a freezing order is to prevent the misuse or manipulation of the court’s procedures. It is not intended to provide security to the plaintiff for a judgment or order. The freezing order is designed to safeguard the integrity of the court’s orders and does not create additional rights or act as a form of anticipatory execution or judgment security. It can provide a protection for the court’s procedure from the abuse of the enforcing court orders.
  3. Considering applications carefully: Since the freezing order is an extraordinary interim measure, it should not be granted without careful consideration. The court has a duty to thoroughly examine applications for such relief due to its exceptional nature.

Can you obtain a freezing order from the Court?

Each case is unique and depends on its own set of circumstances. However, the Court specifically considers the following factors:

  1. A reasonable arguable case against the defendant: You must present sufficient evidence to the Court to demonstrate that there is a valid case against the defendant. This evidence is typically provided in the form of an affidavit that outlines the details of your case and includes relevant documents.
  2. Real risk of asset concealment, disposal, or removal: It is necessary to prove to the Court that there is a genuine risk of the defendant hiding, getting rid of, or moving their assets outside the jurisdiction of the Court in order to evade fulfilling an unfavourable judgment. The burden of proving this risk lies with the plaintiff. It is crucial to provide the Court with evidence that demonstrates a concrete risk or “real danger” of asset disposition or removal from the jurisdiction.

Method of avoiding

Disclaimer: 

This article does not give legal advice. It is intended to provide general information in summary form on legal topics, current at the time of first publication, for general information purposes only. The contents do not constitute legal advice, are not intended to be a substitute for legal advice and should not be relied upon as such. Formal legal advice should be sought in particular matters.