Prateek Gupta fails to overturn worldwide freezing order in Trafigura dispute
Entrepreneur Prateek Gupta’s application to remove the worldwide freezing order failed after the High Court ruled evidence used did not provide “any real support” for the case.
Global commodities trader Trafigura filed a claim against Gupta and several of his entities over systematic fraud Trafigura alleged to have been committed by a group of companies connected to and controlled by Gupta.
In a statement back in February, the company said the fraud concerns containerised nickel in transit during 2022 and involved misrepresentation and presentation of a variety of false documentation.
Trafigura applied without notice for a worldwide freezing order to be placed on him and his entities, which was granted by Mr Justice Foxton on 8 February.
During a two-day High Court hearing last week, Gupta asked a judge to lift the freezing order, claiming Trafigura committed serious failures to comply with their duty of full and frank disclosure when obtaining the order.
Today, Mr Justice Bright dismissed the application, ruling that he was “not satisfied” with the materials shown to him as part of Gutpa’s argument.
He did add that his conclusion has no bearing on what will happen at trial, which is down for a case management conference this afternoon.
A spokesperson for Prateek Gupta (and Defendants 1-5) said: “We have always strongly denied Trafigura’s claim in the main proceedings. The Court’s decision to continue the freezing order is not a ruling on that claim, and has no bearing on it. Indeed, Mr Justice Bright stated that “At this early stage, I cannot possibly decide whether any individual did not know about the alleged fraud – not least because the fraud, itself, must first be explored, tested and established at trial.” We now look forward to advancing our case and proving at trial the involvement of senior Trafigura representatives in the alleged arrangement.”
Story updated as the order was against Prateek Gupta, not Sanjeev Gupta.
Updated to include Prateek Gupta comment.