This is an application to set aside an order made under CPR Part 71 that the director of a company which is a judgment debtor attend court to provide information for the purpose of enabling the judgment creditor to enforce the judgment debt.
The proceedings are enforcement proceedings brought by Vale S.A. ("Vale") against BSG Resources Limited ("BSGR") for the purposes of enforcing an arbitration award made in London on 4 April 2019 requiring BSGR to pay Vale an amount of approximately US$2.2 billion. The award was issued by an arbitration tribunal in the London Court of International Arbitration Case No. 142683 (the "Award").
Both parties are international mining companies. Vale is a Brazilian company. BSGR is based in Guernsey and is associated with the billionaire entrepreneur, Benjamin Steinmetz. The Award found that BSGR was liable for fraudulent misrepresentation arising from a joint venture mining project in Guinea. The tribunal found that BSGR made false or misleading statements to Vale during the due diligence process, including a representation that it had not engaged in bribery or corruption when it had in fact done so.
BSGR has not paid any part of the Award. Since 6 March 2018, it has been in voluntary administration on the application of its directors. The order was made by the Royal Court of Guernsey. The Joint Administrators of BSGR are Mr William Callewaert and Mr Malcolm Cohen of the firm of accountants BDO. There has been no application for the Administration to be recognised in England and Wales.
The Award was recognised in England by the order of Mr Justice Bryan dated 9 May 2019, granting Vale permission to enforce in the same manner as a High Court judgment (the "Enforcement Order"). In May 2019, BSGR brought an application challenging the Award under sections 24 and 68 of the Arbitration Act 1996 on the basis of allegations of serious irregularity and made a further application seeking to set aside or stay the Enforcement Order pending the outcome of its challenge.
The application to set aside or stay the Enforcement Order was dismissed by way of the order of Mrs Justice Moulder dated 20 September 2019.
BSGR's challenge to the Award was heard on 28 November 2019 and dismissed by Sir Michael Burton GBE.