In the case of Re Nicolaou Bros Tourist Enterprises Ltd
(1999) 1 AAD 201, the Supreme Court of Cyprus, by adopting English
legal principles, recognized inter alia the jurisdiction of Cyprus
Courts to grant Chabra type injunctions.
In essence, a Chabra injunction is a freezing order against a
third party which is not a party to the substantive proceedings at
hand, and against whom the claimant has no available cause of
action. (TSB Private Bank International SA v Chabra [1992]
1 WLR 231)
Such an injunction is not addressed against the third party, but
against the principal defendant in the proceedings, and encompasses
any assets held by the third party in its capacity as nominee or
trustee of the principal defendant. Thus, a grant of a Chabra
injunction will block the third party from dissipating or parting
with the assets, and thus ensuring their preservation.
