Fraudulent arbitration cannot block secured creditor enforcement, and collusive receiver arrangements may be set aside.

Arbitral and execution machinery used through a collusive, fraudulent reference will not be allowed to defeat a secured creditor's lawful enforcement rights. The Court found that the alleged arbitration was engineered around a non-existent oral agreement, with an award obtained in suspiciously short time and used to obstruct recovery against a secured flat. On that basis, the attachment and receivership could not be sustained. The attachment was raised, the Court Receiver was discharged, and possession of the flat was directed to be handed over to the applicant, with contempt-related consequences also initiated against those involved.

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Issues: Whether the attachment over the secured flat should be raised, the Court Receiver discharged, and possession directed to be handed over to the applicant in view of the fraudulent and collusive nature of the arbitral proceedings and award.

Analysis: The material showed that the alleged arbitration was engineered around a non-existent oral agreement, an award was obtained within days on the basis of a suspiciously timed and collusive reference, and the resulting proceedings were used to obstruct a secured creditor from enforcing its security. The Court found that the process had been devised to defeat the applicant's recovery rights and that the administration of justice had been abused through a fraudulent use of arbitral and execution machinery. In those circumstances, the attachment and receivership could not be sustained.

Conclusion: The attachment was raised, the Court Receiver was discharged, and possession of the flat was directed to be handed over to the applicant.

Final Conclusion: The secured creditor's enforcement was restored and the fraudulent receiver arrangement was undone, while the Court also initiated contempt-related consequences against the persons involved.

Ratio Decidendi: A court will not permit its process, including arbitration and execution machinery, to be used to perpetrate a fraud or defeat lawful security enforcement, and relief granted on the basis of a collusive proceeding can be set aside.

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