A Pyrrhic victory? Unrecognised foreign judgments and English bankruptcy petitions: the Court of Appeal’s decision on remittal in Drelle

Emilio Salice, Katharina Crinson and Richard Tett of Freshfields discuss the Court of Appeal’s decision in Servis-Terminal LLC v Drelle, which set aside a bankruptcy order based on an unrecognised Russian judgment after finding a genuine and substantial dispute over allegations of judicial bias and fraud, clarifying that debtors need not prove such allegations at the petition stage, foreign appellate decisions do not necessarily cure procedural defects, and creditors cannot use bankruptcy proceedings to bypass substantive disputes that must be resolved through recognition proceedings.

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