CAYMAN ISLANDS Law and Practice Contributed by: Guy Manning, Harry Shaw and Shaun Tracey, Campbells
the court may summarily determine that question or order that it be tried. Likewise, the court may deter - mine or try any question as to whether the garnishee’s debt is payable to a person other than the judgment debtor. As to costs of the garnishee proceedings, the judg - ment creditor will ordinarily be entitled to retain such sums out of the money recovered by them under the order and in priority to the judgment debt. Charging orders, stop orders, etc The procedure governing charging and stop orders is given in GCR Order 50. In summary, an application by a judgment creditor for a charging order in respect of a judgment debtor’s beneficial interest in any prop - erty will be made by an ex parte originating motion to show cause, specifying the time and place for further consideration of the matter and imposing the charge in any event until that time. Once again, a supporting affidavit is required to contain certain information. If the order is granted, it must be served, together with the supporting affidavit, upon the judgment debtor. Where the order relates to securities (other than securities held in court), it must also be served upon the corporate entity concerned (and, in the case of securities issued by or on behalf of the Cayman Islands government, it must be served upon the finan - cial secretary and the stock transfer agent, if any). Where the order relates to a fund in court, a copy shall be served upon the accountant general at the Court Funds Office. Where the order concerns an interest under a trust (not being a registered mutual fund), the court may direct that it be served upon the trustees. Such service (and any additional service directed by the court) must be effected at least seven days before the hearing date. Upon further consideration of the matter, the court will either make the order, with or without modifications, or discharge it. In the case of Top Jet Enterprises Limited v Sino Jet Holding Limited & Others [2021 (2) CILR 310], the Grand Court made an order for the sale of charged property being shares in a private company and gave directions accordingly.
If a charging order is made over an interest in land, it will be registered in the encumbrances section of the relevant land register. Once any such order is made absolute, the judgment creditor may exercise its power of sale to sell the property by public auction in accordance with Section 75 of the Registered Land Act, without applying to the court for an order for sale and without giving any notice in accordance with Sec - tion 72 of the Registered Land Act. There are also specific procedural rules with respect to stop orders, the purpose of which is to prevent transfers in securities. Attachment of earnings Applications for an attachment of earnings order are made under GCR Order 50A. Such applications tend to be more straightforward than certain other methods of enforcement. In summary, the application must be supported by an affidavit identifying the judgment or order in respect of which the attachment of earnings order is sought, verifying the amount due and stat - ing whether a writ of execution has been issued. The application must be served on the debtor, giving them eight days to file a statement of means. On receipt of the debtor’s reply, the judge may make an attachment of earnings order. The judge may also make a consolidated attachment order where the judgment debtor owes multiple judgment debts. Equitable execution – the appointment of a receiver GCR Order 51 rule 1 provides that where an appli - cation is made for the appointment of a receiver by way of equitable execution, the court, in determining whether it is just and equitable to do so, will have regard to the amount claimed by the judgment credi - tor, to the likely amount to be obtained by the receiver and to the probable costs of their appointment. The court may direct an inquiry into any of these matters or any other matter before making the appointment. GCR Order 51 rule 3 provides that any such applica - tion must be made in accordance with GCR Order 30 rule 1 and that rules 2 to 6 of that Order will apply as they would in relation to a receiver appointed for any other purpose. In summary, GCR Order 30 rule 1
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