Conway v Air Arabia [2025] CIGC (FSD) 41

On 20 May 2025, in a fully reasoned decision of the Grand Court in Cayman Islands, Justice Asif KC has handed down a judgment considering the scope of s.147 of the Companies Act (2023 Revision), a provision which allows the court to grant redress to victims of fraudulent trading. The Caymanian provision was brought into force in 2009, and is modelled on s.213 of the Insolvency Act 1986, but had not previously been considered in any detail by the Caymanian courts. The English provision has antecedents going back to 1928.

The case arises out of the long-running liquidation of the Abraaj group. This claim, brought by the liquidators of Abraaj Holdings, alleges that Air Arabia, a regional airline based in Sharjah in the UAE, was involved in the frauds of Abraaj and that it should be held liable to contribute to its losses.
The case is likely to be fiercely contested but the decision of Justice Asif KC focused just on preliminary issues of procedure and jurisdiction. The Judge pointed out that an erroneous practice had developed in Cayman Islands of starting claims under Part V of the Companies Act by writ, whereas they should be commenced by summon in the liquidation.

The Court also held that the submission by Air Arabia of proofs of debt in the liquidation of Abraaj Holding amounted to a submission to the jurisdiction of the court supervising the liquidation itself including in relation to a claim under s.147 of the Companies Act. That section, the court held, had extraterritorial effect. The liquidators did not need permission to serve Air Abraaj out of the jurisdiction, and the action will now continue as if commenced by summons (as it should have been). That was case even though, on the face of it, there is scant connection to the Cayman Islands to be found in the business done between Abraaj and Air Arabia in the UAE some years ago.

On 7 November 2025, the Cayman Court of Appeal declined to grant leave to appeal so this first instance decision is likely to be important for claims made under Part V of the Companies Act, clarifying as it does the law on jurisdiction and procedure for such claims.

A copy of the full judgment can be found here.

Steven Thompson KC, instructed by Conyers, Dill & Pearman (Cayman) and Bird & Bird (in London), appeared for the respondent Air Arabia.