Judgments

The Claimant applied for court sanction of a corporate restructuring involving the merger of the Company and the LLP under sections 124 and 126 of the AIFC Companies Regulations, with both entities consenting and no creditor objections raised. The Court found the statutory requirements satisfied, confirmed adequate protection of creditors, and ordered the merger and reconstruction to proceed in accordance with the Agreement on Merger.

The Claimant brought a contractual claim under an investment agreement seeking repayment of its investment and a contractual penalty, while the Defendant failed to file a defence. The Court found that only part of the investment was proven to have been paid, ordered its return with a reduced penalty, and dismissed arguments regarding corporate veil piercing and freezing relief, making no order as to costs.

The Applicant sought an oral renewal of its application for permission to appeal, but the Court refused the application and subsequently considered the Respondents’ claims for costs. Exercising its discretion under the AIFC Court Rules, the Court awarded modest costs to the Second and Third Respondents, while rejecting requests for enhanced costs, a stay of the costs order, and set-off against alleged debts.

The International Academy of Medicine and Sciences LLP brought a claim against the State Institution “Health Department of Almaty Region” for unpaid management fees under a public-private partnership agreement for the operation of a hospital in Kazakhstan. The AIFC Court found that the State Partner unlawfully suspended payment based on an invalid inspection attempt that exceeded its contractual rights under the PPP agreement. The Court held the Defendant in breach, ordered payment of outstanding management fees and a contractual penalty, and dismissed the counterclaim.

The AIFC Court considered two applications by The Consortium seeking to set aside an arbitral award and related enforcement orders issued in a dispute with Joint Venture “Alaygyr”. The Court held that the Claimants’ arguments were largely an impermissible attempt to appeal the merits of the arbitral award and that no valid grounds existed to challenge jurisdiction, validity, or public policy compliance. Accordingly, the Court dismissed both applications in full.

AOM Rail B.V. applied to the AIFC Court for recognition and enforcement of an arbitral award issued in IAC Arbitration Case No. 90/2024 against KENMART LLP. The Court found the application justified and ordered the defendant to pay KZT 1,619,628,362 in debt and KZT 500,000 in arbitration costs. The Court also granted the defendant 14 days to apply to set aside the order, with enforcement stayed until that period expires or any such application is resolved.