Groundbreaking Privy Council appeal: can the court appoint receivers over trust powers of revocation?

This important and influential case will decide whether, as a matter of law, the court has jurisdiction to appoint, at its discretion, receivers over the powers of revocation in a trust in order to compel the exercise of such powers.

In the TMSF case, TMSF has a judgment in personam in the Turkish courts against Mr Demirel for US$30m. The Grand Court of the Cayman Islands has also given a judgment in favour of TSMF against Mr Demirel, based on the Turkish judgment.

Mr Demirel had set up two trusts whose assets (worth US$24m) comprise the beneficial ownership of 4 Cayman companies. The trust deeds contain powers of revocation in favour of Mr Demirel, by the exercise of which he can cause the trusts to be determined and their assets re-vested in him.

Stephen Moverley Smith QC and Alexander Pelling are acting for the Turkish Financial Services Authority in this matter.

If you would like further details of this case and a copy of the Court of Appeal and forthcoming Privy Council judgment, please contact Paul Matthews on 020 7691 2424 or paul.matthews@xxiv.co.uk.