Cyprus Injunctions - Chabra Orders Against Non-substantive Defendants

Normally, Courts will not issue a freezing injunction against a person who is not a party to the proceedings and against whom there does not exist a serious issue to be tried. The possibility, however, of issuing an interim injunction against a third party who is not a "substantive" or the "principal" Defendant and against whom there is no serious issue to be tried has been recognised in both English and Cypriot case law.

The General Principle:

These type of injunctions became known as "Chabra" orders after the well known precedent of T.S.B. Private Bank International S.A. ν. "Chabra" and Another [1992] 1 W.L.R. 231. The jurisdiction may be exercised where there is good reason to suppose that assets held or owned by a third party are in truth the assets of the injuncted principal Defendant (e.g. where the assets are held by the third party on a bare trust (or as nominee) for the defendant). The discretion of the Court may extend to a situation where the principal