ARTICLE
9 September 2025

No Further Permission Is Needed To Continue Proceedings In Higher Court Against A Company Under Liquidation If Such Permission Had Been Already Granted By First Instance Court

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Soteris Pittas & Co

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In the context of the Appeal under number E223/21, the Appellants filed an application to amend the title of the Appeal requesting the replacement of the Special Administrator with the Liquidator.
Cyprus Litigation, Mediation & Arbitration

In the context of the Appeal under number E223/21, the Appellants filed an application to amend the title of the Appeal requesting the replacement of the Special Administrator with the Liquidator. The need for the amendment was created due to the issuance of an order for liquidation of the Bank who was the Defendant in the Action. It is important to mention the fact that the Plaintiffs-Appellants requested and received a leave to continue the proceedings of the Action from the First Instance Court and more specifically from the Insolvency Court.

The Respondent filed an opposition to the application for amendment of the title of the Appeal claiming that the appeal and any other interim proceedings taken in the context thereof is a completely separate procedure, for the pursue of which, relevant leave should first be obtained from the Insolvency Court and it is not covered by the leave to continue the Action obtained from the First Instance Court.

The Court of Appeal with reference to the relevant case law inter alia Stefanos & Andreas Gold Stores Trading Limited v. KEAN Soft Drinks Company Limited (no. 1) (1998) 1C A.A.D.1806, stated that the term “procedure” in Article 220 of Cap. 113, also includes the filing or continuation of an appeal. Specifically, the following were stated:

“In view of the protection sought and afforded by the stay of the proceedings and although the word 'action' in Articles 215 and 220 implies proceedings before the First Instance Court, nevertheless the word 'proceedings' cannot, in our opinion, be so interpreted so to mean proceedings which continue or is commenced against the company only in the First Instance Court, but should also cover the appeal proceedings before the Supreme Court, otherwise the intended protection will not be complete and effective.”

Upon reviewing the facts of the case, the Court of Appeal decided that the permission granted to the appellants to continue the action at the First Instance Court pursuant to Article 220 of Cap. 113, covers not only the first instance proceedings, but also any appeals filed either on interim decisions, which were issued in the context of the action, but also of appeals on the final decision of the First Instance Court.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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