Lawyers at Spencer West, an award-winning international law firm, have secured a significant legal victory after Chief Insolvency Court Judge Briggs of the Business and Property Courts in London dismissed a US $1.2 billion bankruptcy petition filed against HRH Prince Hussam Bin Saud Bin Abdulaziz Al Saud, a prominent member of the Saudi Royal Family and Emir of the Al-Bahah Region.
The case, which has attracted global attention over the years, centered around an alleged debt dispute with Kuwaiti Telecoms company Mobile Telecommunications Company KSCP (MTC), dating back to 2010. MTC had sought to enforce a debt that had grown over time, now surpassing $1.2 billion due to accumulated interest and default commissions.
The case was a highly complex one, unfolding on the international stage. At the heart of the legal dispute was the question of whether the English Court had jurisdiction to declare a member of the Saudi Royal Family bankrupt. The critical issue was whether Prince Hussam had a ‘place of residence’ in England during the Relevant Period as required by Section 265(2)(b)(i) of the Insolvency Act 1986. The court’s ruling has significant implications for jurisdictional issues in international bankruptcy cases involving prominent individuals.
MTC had secured a ruling by an Arbitral Tribunal under the London Court of International Arbitration (LCIA) Rules 1998 in November 2012. A series of arbitral awards made in 2015-2018 arbitration proceedings followed, which awarded the Petitioner £702,960,295.75 as the “First Alleged Debt” and £3,292,847.55 as the “Second Alleged Debt,” with default commission accruing at a rate of US$117,153.85 per day from September 201Prince Hussam does not admit the debt and denied that the court had jurisdiction to make such an order, arguing that he did not meet the necessary residency requirements and, later on in the proceedings, argued that the alleged debt was statute-barred and could not be relied upon to support the petition.
Prior to Spencer West being instructed by Prince Hussam, the issue of jurisdiction had been considered by five judges sitting in the High Court. At each turn the Court concluded, on a good arguable case basis that Prince Hussam had a place of residence in England and Wales for the purposes of section 265(2)(b)(i) Insolvency Act 1986 (the “IA 1986”).
After an intense five-day hearing in December 2024, Chief Judge Briggs delivered a reserved judgment on 22 January, ruling in favour of Prince Hussam and dismissing the petition. In a meticulous examination of the facts, the Judge found that the Petitioner had failed to provide sufficient evidence to establish that Prince Hussam had a place of residence in England and Wales during the relevant period. The Judgment decisively closed the door on the bankruptcy petition, emphasising the critical importance of jurisdictional clarity in high-stakes international disputes.
Amrit Johal and the rest of his Spencer West team are very proud to have successfully represented Prince Hussam in this complex and high-profile victory. The expert legal strategy, which carefully dissected the facts and anticipated potential hurdles, was instrumental in dismantling MTC’s case. The litigation itself involved numerous diverse issues, all of which required careful handling, and which ranged from Prince Hussam’s ability to travel to England to give live evidence, to concerns regarding the Petitioner’s solicitors’ relationship with the Chair of the Arbitration Panel, to fairness in the arbitral process.
The Judgment itself highlights not only the complexity of international insolvency law, but also the power of careful legal navigation in securing favourable outcomes against formidable odds. The team’s ability to think beyond the obvious arguments was key in securing this successful outcome.
Commercial Disputes Partner Amrit Johal and his Spencer West team expressed their pride in having successfully represented Prince Hussam in this complex and high-profile victory.
“This was a significant and hard-fought achievement. Successfully shielding the client from a $1.2 billion bankruptcy claim, one they consistently contested, is far from an ordinary victory.” Mr Johal said.
“Prince Hussam showed great resolve and patience throughout, and it is a testament to his true class. This case also signified the importance of the awareness of different cultural values that exist between the West and the Kingdom of Saudi Arabia.”
“The ruling sets a precedent for similar disputes in the future, particularly regarding the jurisdictional challenges that arise in international arbitration and bankruptcy matters.”