Summary

Magot Incorporation Ltd and Vebeca Holdings Ltd, both incorporated in Cyprus, owned 50% each of Desimanco Ltd, also a Cyprus company, the main asset of which was 10.000 shares of the Russian company OOO Poligrafinvest. In or about September 2011 these shares were transferred to the Cyprus company Zimmerco for an unusually low consideration. These shares were further transferred in or about July to the BVI company Gazin Holdings Corp.

These events gave rise to the arbitration Vebeca Holdings Ltd (Cy) and Kayumavich Shadier (Uz) v. Magot Incorporation Ltd (Cy) LCIA Case No. 122 213. The tribunal found that it lacked jurisdiction and awarded the costs to the respondent (award of May 23, 2014, amended on June 23, 2015). Magot Incorporation Ltd turned to the Cyprus courts in order to register, recognize and enforce the final award against Vebeca Holdings Ltd and Kayumavich Shadier. Allegations of fraud in Azerbaijan, which were investigated in Azerbaijan and Russia, as well as arrest in Finland due to Interpol notice were expressed before the Court; it did not allow for further elaboration, as these were unrelated with the submitted request. The application was successful and the award was registered (Magot Incorporation Ltd v. Vebeca Holdings Ltd and Kayumavich Shadier, District Court of Limassol Application No. 8/2015, interim judgment of February 8, 2016 and judgment of February 17, 2017).

Parallel to the arbitral procedure, Magot Incorporation Limited initiated litigation proceedings against a number of natural and legal persons of Cyprus, BVI and Uzbekistan before the Courts of Cyprus requesting the annulment of the share purchase agreements due to fraud and/ or illegal actions (Magot Incorporation Ltd v. 1. Desimanco Ltd (Cy), 2. Zimmerco Limited (Cy), 3. Panikos Papamichael (Cy), 4. Natalie Nestoros (Cy), 5. Shadiev Nabi (Uz), 6. Gazin Holdings Corp. (BVI), 7. Plinfoserco Ltd (Cy), 8. Spiftco Limited (Cy), 9. Asoted Services Ltd (Cy), 10. Nestor Nestoros (Cy), 11. Susan Kalogreadou (Cy), District Court of Limassol Case No. 4252/2012, judgments of November 27, 2013, February 11, 2014, November 21, 2014, December 18, 2015, June 2, 2016 and four judgments of April 12, 2017) and damages (Magot Incorporation Ltd v. Desimanco Ltd and Nabi Shadev, District Court of Limassol Case No. 1195/2016, judgment of March 20, 2018). The outcome of these proceedings is unclear. An application to unwind Vebeca Holdings Ltd was rejected (In re Desimanco Ltd, District Court of Limassol Application No. 22/2015, judgment of June 9, 2015 & In re Vebeca Holdings Ltd, District Court of Limassol Application No. 463/2017, judgment of May 30, 2018).

Litigation proceedings were also initiated before the courts in BVI, although their precise content and outcome is not explained in the Cyprus litigation proceedings. Still, expenses that occurred before and were calculated by the courts in the BVI were the object of an application for a summary judgment before the District Court of Limassol. The application was successful (Gazin Holdings Corp. v. Magot Incorporation Ltd, District Court of Limassol, Case No. 2715/2016, judgment of August 18, 2016).

This document contains:

Magot Incorporation Ltd v. Vebeca Holdings Ltd and Kayumavich Shadier, District Court of Limassol Application No. 8/2015

• interim judgment of 8 February 2016
• judgment of 17 February 2017

Magot Incorporation Ltd v. 1. Desimanco Ltd (Cy), 2. Zimmerco Limited (Cy), 3. Panikos Papamichael (Cy), 4. Natalie Nestoros (Cy), 5. Shadiev Nabi (Uz), 6. Gazin Holdings Corp. (BVI), 7. Plinfoserco Ltd (Cy), 8. Spiftco Limited (Cy), 9. Asoted Services Ltd (Cy), 10. Nestor Nestoros (Cy), 11. Susan Kalogreadou (Cy), District Court of Limassol Case No. 4252/2012

• Judgment of 27 November 2013
• Judgment of 11 February 2014
• Judgment of 21 November 2014
• Judgment of 18 December 2015
• Judgment of 2 June 2016
• four judgments of 12 April 2017

Magot Incorporation Ltd v. Desimanco Ltd and Nabi Shadev, District Court of Limassol Case No. 1195/2016

• judgment of 20 March 2018

In re Desimanco Ltd, District Court of Limassol Application No. 22/2015

• judgment of 9 June 2015

In re Vebeca Holdings Ltd, District Court of Limassol Application No. 463/2017

• judgment of 30 May 2018

Gazin Holdings Corp. v. Magot Incorporation Ltd, District Court of Limassol, Case No. 2715/2016

• judgment of 18 August 2016