Sterling Law made it to the books again! Won the case in COA!

Court of Appeal handed down its judgement in Drelle v Servis-Terminal LLC [2025] EWCA Civ 62 today setting aside the judgements of Richards J at the High Court appeal and ICCJ Burton and dismissing the bankruptcy petition.
In particular, COA analysed the concept of “debt” with respect to foreign judgements. Particular reference was made to s267 IA 1986 which states that a bankruptcy petition can be presented in respect of a “debt” for “is for a liquidated sum payable to the petitioning creditor either immediately or at some certain, future time, and is unsecured”. The Court also highlighted that a foreign judgment “has no direct operation in England”
At 55, the Court found:
“Drawing some threads together, it seems to me that, where there is no statutory provision to contrary effect, a bankruptcy petition cannot be presented in respect of a foreign judgment which has not been the subject of recognition proceedings. While an unrecognised judgment may be determinative for certain purposes, it will have “no direct operation” in this jurisdiction and so cannot be used as a “sword”, whether as regards “direct execution” or as the basis of a bankruptcy petition. An obligation to make a payment imposed by an unrecognised foreign judgment is not enforceable as such in this jurisdiction and, in the eyes of the law of England and Wales, does not constitute a “debt” for section 267(1) or section 267(2)(b) of the 1986 Act. A foreign tax will not give rise to such a “debt”. No more will an unrecognised foreign judgment, which similarly involves exercising sovereign power. That conclusion is, moreover, consistent with the position under the 1933 Act, as explained in Judgment Debtor. It is also reinforced by section 267(1)(b)’s requirement that the “debt” in respect of which a bankruptcy petition is presented should be “payable …, either immediately or at some certain, future time”. A sum for the payment of which a foreign judgment provides is not, as it appears to me, to be regarded as so “payable” if the judgment is unenforceable unless and until recognised by a Court in this jurisdiction. (Compare in this respect King Crude Carriers SA v Ridgebury November LLC [2024] EWCA Civ 719, at paragraph 27, per Popplewell LJ.)”
In short, the Court highlighted that as the foreign judgement was not subject to recognition proceedings in England and Wales, it was not capable of providing the basis for the bankruptcy petition, in turn resulting in no bankruptcy order.