freezing injunction

(redirected from Mareva injunction)
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freezing injunction

a court order which restrains someone from removing or dealing with their assets. This can be by way of an interim order and is referred to as a ‘freezing injunction’. These were formerly known as Mareva injunctions a form of injunction, named after the case in which it was first granted, under which the court could freeze the assets of a resident or non-resident debtor where the debtor has gone abroad but still has assets in England. A provision could be inserted to protect third parties abroad by way of preventing the order having effect until the injunction is approved by the foreign court, such a provision being known as a Babanaft proviso after the case in which it was first allowed. The procedure is now set out in rules of court. To obtain a ‘freezing injunction’ the creditor must present a good arguable case, showing that there is a real risk of dissipation and that the order is appropriate on the balance of convenience between the parties. The order imposes limitations on what a debtor can do with their assets but provisos maybe permitted to allow the addressee to continue to trade or maintain a lifestyle. The creditor must identify a cause of action and demonstrate that there is a real risk that the debtor is or may be in the process of dealing with their assets.