Court gives liquidators permission to bring US$216m claim against Pramod Mittal

Mitchell, Dowers, Plunkett & GSH Ltd v Pramod Mittal [2025] EWHC 934 (Ch)

The joint liquidators of Global Steel Holdings Limited (in liquidation) (“GSHL”) have been given retrospective permission pursuant to s.285(3) of the Insolvency Act to bring High Court proceedings against Pramod Mittal, who remains a bankrupt.

The application concerned claims totalling US$216 million against Mr Mittal, alleging fraudulent trading and breach of fiduciary duty, including the improper transfer of funds to family members after the imposition of a worldwide freezing order. The claims centre on the transfer of debts owed by a Nigerian subsidiary of GSHL to GSHL’s parent company and the subsequent payment of some US$180m to the parent company. A substantial proportion of these funds were then transferred, via Swiss accounts, to members of Mr Mittal’s family.

The joint liquidators argued that their claims were substantial and needed resolution in ongoing proceedings, rather than through the proof of debt process in bankruptcy. One aspect of this argument was the potential application of the rule in Cherry v Boutlbee as Mr Mittal’s trustee in bankruptcy has filed a substantial proof of debt in the liquidation. The Mr Mittal opposed, citing procedural delays, alleged prejudice to creditors, and his inability to fund a defence.

Deputy ICCJ Shaffer granted retrospective permission for the proceedings, finding:

• The claims were genuine and not clearly unsustainable.
• The proceedings were best resolved within existing litigation, not via the proof procedure.
• No unfair prejudice to other creditors would result, as the claims needed to be quantified and determined, particularly if Cherry v Boultbee was of application.
• The delay in seeking permission was justified and caused no prejudice.
• Mr Mittal’s claimed impecuniosity was not sufficient reason to refuse permission, given evidence of available resources.

Graeme Halkerston, instructed by Charles Russell Speechlys, appeared for the joint liquidators.

Read the full judgment