CL-2025-000062 - [2025] EWHC 1506 (Comm)

Fecha: 18-Jun-2025

Introduction

Introduction

This judgment arises from the expedited hearing of:

The application of the Claimant (“Eraaya”) for an interim mandatory injunction requiring the Defendant (“Elara”) to send a confirmation email to a settlement agent, Glas Specialist Services Ltd (“GLAS”), which would compel GLAS to transfer to Eraaya the remaining $40m of a bond issuance, which the Bondholders paid to GLAS and to which they assert proprietary rights (the “Injunction Application”);

The Bondholders’ application for joinder to the proceedings (Joinder Application);

The Bondholders’ and Elara’s applications for a declaration that they have not breached the collateral use restrictions in CPRs 31.22(1) and 32.12(1) (“Declaration Applications”), alternatively for retrospective permission (“Permission Applications”).

The background in summary is this. Eraaya wanted to buy a company, Ebix, but lacked the funds to do so. It arranged the issue of certain bonds designed to provide it with the wherewithal for the transaction (the “Bond”). Eraaya says that its agent Elara is in breach of an obligation to pay over the proceeds of sale of the second tranche of those Bonds to Eraaya (thereby impeding it from completing the purchase and taking control of Ebix). It seeks a final mandatory injunction requiring it to do so.

Elara (as First Respondent) and the Bondholders (who also participate as Respondents by direction of the Court) say that Eraaya has failed to comply with its obligations under the Bonds. They say that the Bondholders invested in the Bonds on the basis of representations and understandings that they would have an interest in Ebix via a pledge of shares and that while not providing any such pledge Eraaya had already drawn down $80m of the proceeds for its own benefit and, by its Injunction Application, now seeks release of the balance of $40m in order to pay it away to a related entity.