Vol 19 (2022) - Issue 6

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In The Matter of Polarcus Limited (In Official Liquidation) FSD 31 of 2021 (IKJ): Judgment on Declaratory Relief in Cayman Islands Insolvent Liquidation Proceedings

Synopsis
The decision of Kawaley J in In The Matter of Polarcus Limited (In Official Liquidation) FSD 31 of 2021 (IKJ) has provided helpful clarification on what he described as a 'legally significant' and 'important jurisdictional point'.
The question was one of the jurisdiction of the Grand Court of the Cayman Islands ('Grand Court') to grant declaratory relief in official liquidation proceedings in circumstances where there is no express provision in the Companies Act (as amended) ('Companies Act') or the Companies Winding Up Rules (as amended) ('CWR') giving the Grand Court jurisdiction to make declarations in insolvent liquidation proceedings.
Kawaley J held that it does have the jurisdiction to do so – whether that be pursuant to the Grand Court Act, impliedly under the Companies Act jurisdiction to control the exercise of a liquidator's powers, pursuant to its inherent jurisdiction to fill a lacuna in the existing procedural framework, or to make good its own prior order in the liquidation proceedings.