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ARTICLE · 31 OCTOBER 2022

They Think It's All Over. No, It's Not…

In the recent case of BEC Limited v A2 and A1, the Eastern Caribbean Court of Appeal confirmed for the first time that an order dismissing an application to set aside a statutory demand is a final order, in respect of which a party is not required to obtain leave to appeal.

British Virgin IslandsLitigation, Mediation & Arbitration

In the recent case of BEC Limited v A2 and A1, the Eastern Caribbean Court of Appeal confirmed for the first time that an order dismissing an application to set aside a statutory demand is a final order, in respect of which a party is not required to obtain leave to appeal.

At first instance, the Commercial Court refused BEC's application to set aside a statutory demand issued by certain creditors in respect of a debt owed by BEC and its wholly owned subsidiary as a result of a costs award in arbitration proceedings before the London Court of International Arbitration. BEC appealed to the Court of Appeal without seeking leave and in response, the creditors applied to strike out BEC's appeal as being a nullity on the ground that the order was interlocutory and leave was required to appeal it. It was not disputed that if leave was indeed required, BEC's appeal would be liable to be set aside as a nullity.

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