The Manx Court recently determined a motion for Security of Costs in an application brought by Mr Pattni seeking that the parties Mr Ali and Dinky International SA (Dinky) provide Security of Costs in respect of Mr Ali and Dinky petitions dated 14th September 2001. This is believed to be the first time an application of this nature was before the Manx Courts post the enabling of the Manx Human Rights Act 2007.
The background to the proceeding involved an agreement where Mr Ali and Dinky a Liberian company which owned the bulk of World Duty Free Company Ltd (a Manx company) (WDF) shares had agreed to sell shares in WDF.
The agreement was subject to Kenyon Law and in 1998 the parties submitted to the proceeding of a Kenyan High Court. An order was subsequently made by Mr Justice Mbaluto on 25th September 2001 ordering Mr Ali and Dinky transfer all their shares in World Duty to Mr Pattni as per the sales agreement. In two petitions dated 14th September 2001 Mr Ali and Dinky further challenged the sales agreement and sought declarations that they were the beneficial share owners of the issued share capital of World Duty.
Mr Pattni made a petition seeking rectification of the Companies Register that all shareholding in World Duty were to be registered in his name and a declaration that he was the legal and beneficial owner of the shares.
As Mr Ali was resident in Dubai, and Dinky a Panamanian company with a registered agent in that country the applicant sought payment into court as security for past and future costs.
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