The Grand Court of the Cayman Islands (Court)
has confirmed that the Court has the jurisdiction to grant
declaratory relief within winding-up proceedings (In the Matter
of Polarcus Limited (In Official Liquidation) (Unreported,
Justice Kawaley, 23 June 2022 Cause No: FSD 31 of 2021 (IKJ)).
This is welcome clarity for insolvency practitioners and other
stakeholders in winding-up proceedings where such declaratory
relief may be required and the relief cannot for some reason be
included in a standard sanction application.
Background
Joint Official Liquidators (JOLs) were
appointed to the Company on 21 June 2021. The JOLs sought sanction
from the Court to enter into a sale and purchase agreement
concerning the purchase of shares in foreign connected entities
(Transaction). The Court granted such sanction
pursuant to an order dated 14 December 2021 (Sanction
Order). Notwithstanding the Sanction Order, the JOLs were
subsequently required to demonstrate to a foreign
