CCJ upholds appointment of Receiver

12 Nov 2015

The Caribbean Court of Justice (CCJ) delivered today its decision in Canadian Imperial Bank of Commerce v Gypsy International and Royston Beepat [2015] CCJ 16 (AJ). This appeal arose out of the decision by CIBC to appoint Mr Granville Phillips to act as a receiver under a demand debenture following a fire which substantially affected Gypsy’s business premises, giving rise to an insurance claim for $950,000. Subsequent to the fire, Gypsy’s managing director, Mr Beepat, was arrested on suspicion of arson, though the charge was eventually dropped. Shortly thereafter Gypsy’s insurers cancelled its insurance policy, thereby endangering CIBC’s security and triggering CIBC’s right to appoint a receiver.

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