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Sequestration meaning

What does Sequestration mean?
In Scottish insolvency practice, sequestration is the bankruptcy process for an insolvent individual or partnership, under which the debtor’s estate is taken into custody and vested in a trustee for the benefit of creditors. It is governed by the Bankruptcy (Scotland) Act 2016. An award of sequestration may follow a debtor application to the Accountant in Bankruptcy (AiB) or a creditor petition to the sheriff court. On award, most assets vest in the trustee in sequestration; diligence is stayed; claims are adjudicated; and assets and income (via any Debtor Contribution Order) are realised to pay a dividend. Discharge is typically after one year, subject to statutory restrictions and undertakings. Sequestration does not apply to companies or LLPs, which are dealt with by liquidation or administration. A protected trust deed is a separate, voluntary Scottish procedure. Outside Scotland, the equivalent personal insolvency process is termed bankruptcy (England and Wales, Northern Ireland and Ireland). In those jurisdictions, “sequestration” is not used for insolvency, though in England and Wales (and occasionally elsewhere) it may describe an enforcement remedy for contempt, whereby assets are seized to compel compliance with a court order.
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NEWS
BHP appeal: can funding Brazilian anti‑suit injunctive relief to restrain English proceedings amount to criminal contempt? Court of Appeal (England and Wales) hearing

Andrew Scott KC of Blackstone Chambers, counsel for BHP Andrew Scott KC said the planned appeal poses the issue of whether seeking anti‑suit relief in a foreign court, linked to proceedings in England, could amount to criminal contempt. Scott told the Court of Appeal that no English authority indicates that it could. BHP has lodged an appeal against a decision by Judge Adam Constable. In June 2025, sitting in the High Court, he held that BHP must confront allegations that it attempted to impede the municipalities’ access to justice in England by supporting proceedings in Brazil’s highest court that might frustrate compensation claims. The municipalities argue that BHP is in contempt of court for agreeing to finance a claim initiated by Ibram, a Brazilian mining association, before the South American country’s Federal Supreme Court in 2024...

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NEWS
Generative AI misuse in litigation: EWHC clarifies duties, sanctions and leadership obligations in Ayinde v Haringey and Al‑Haroun v Qatar National Bank (England and Wales)

Misuse of AI in court and the consequences (Ayinde v Haringey & Al-Haroun v Qatar National Bank) R (on the application of Frederick Ayinde) v Haringey London Borough Council; Al-Haroun v Qatar National Bank QPSC and another company [2025] EWHC 1383 (Admin) What are the practical implications of this case? This ruling sets out explicit directions for lawyers who deploy AI, so that they remain within their professional obligations. The court also outlined what must happen when practitioners discover that they, their wider team, or their client has misused AI. Generative AI systems, including ChatGPT, are not a dependable source of legal research. They can offer convincing but inaccurate claims, refer to authorities that do not exist and attribute quotations to genuine materials that are not present in those texts. Both the Solicitors Regulation Authority and the Bar Standards Board have cautioned against such ‘hallucinations’. Where lawyers nevertheless use generative AI, they owe a professional duty to verify the correctness of any research. That duty equally...

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NEWS
Committal for contempt after criminal acquittal: permission unlikely without new evidence; prioritise early applications (First Capital East v Plana) (England and Wales)

Does a criminal prosecution prevent civil contempt proceedings? (First Capital East Limited v Ilmi Plana & Anor) Practical implications There is a steadily growing momentum across the wider insurance sector, especially in the personal injury sphere, to seek the toughest sanctions realistically available against those who attempt to advance fabricated or inflated claims. Although, to some, such measures may, at first blush, seem heavy-handed — and the PR dimension is ever-present — where the dishonesty is both clear and brazen, often shown by the deployment of covert surveillance, the urge to make examples of fraudsters is entirely understandable. The critical point in this matter appears to have been that the individual had been acquitted and there was no fresh evidence. In general, contempt applications ought to be brought as soon as possible after the civil proceedings and before any criminal prosecution. As the judge remarked, this could be achieved more readily if the route for obtaining permission from the County Court to the High Court were made more...

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View the related Practice Notes about Sequestration

PRACTICE NOTES
Civil contempt under CPR 81: permission, forum and procedure for false statements and interference with the administration of justice (England and Wales)

This Practice Note explains when permission is needed to bring contempt proceedings under CPR 81 (also known as ‘committal proceedings’), together with the manner and forum in which any application for permission should be made. It also considers the proper forum for contempt proceedings more broadly. Types of case requiring permission CPR 81.3(5) states that leave to pursue contempt is only necessary in two categories: interference with the due administration of justice, save in relation to ongoing High Court or County Court proceedings; and an allegation that a person knowingly made a false statement in any affidavit, affirmation or other document verified by a statement of truth, or in a disclosure statement For more information on these types of contempt, see: and False statements. CPR 81.3 specifies the court to which the permission application should be directed, where permission is required—see: Permission and forum. Permission and forum Contempt application concerning knowingly making a false statement, etc, relating to existing...

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PRACTICE NOTES
Pre‑1 October 2020 CPR 81 (England and Wales): Where to apply for permission to bring committal proceedings for contempt (interference with justice; false statements) and Attorney General referrals [Archived]

ARCHIVED: This Practice Note is archived and no longer maintained. It is retained for historic reference only, as it concerns CPR 81 in the form that applied before 1 October 2020, and Practice Direction 81, which was revoked in full with effect from 1 October 2020. If handling a committal application after 1 October 2020, you should refer to the CPR 81 currently in force and the relevant Practice Notes—see: Contempt and committal—overview. For the pre‑1 October 2020 version of CPR 81 or Practice Direction 81, see: This Practice Note provides, in a table, where to seek permission to issue committal proceedings arising from alleged interference with the administration of justice, or from a false statement contained in a document verified by a statement of truth. For guidance, see also: Practice Note: When permission is required to bring committal proceedings [Archived] Practice Note: Committal applications—how to apply for permission [Archived] Practice Note: Committal proceedings—procedure for making and serving the application... ...

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PRACTICE NOTES
Scotland: Protected Trust Deeds: legal framework, eligibility, protection process, AiB oversight, creditor challenges, debtor’s home, discharge, and 2024 regulatory reforms

For many years, debtors have relied upon trust deeds in order to reach a compromise with their creditors as an alternative to formal sequestration in Scotland (see Practice Note: Scotland: the process for applying for sequestration). Rooted in the common law, trust deeds long attracted a relatively ‘light touch’ from the courts, but the law now pays closer attention to them and to this field generally today. Accordingly, trust deeds are presently subject to markedly tighter regulation than previously in Scotland. This Practice Note outlines the key legal principles on trust deeds and the process for obtaining, and the effect of, protected status in this context too. For definitions of frequently used Scottish insolvency terminology, see Practice Note: Glossary of Scottish insolvency words and expressions therein. The Scottish government has announced a commitment to review both formal debt recovery mechanisms—diligence—and the statutory debt solutions—moratorium protection, bankruptcy, Protected Trust Deeds and the Debt Arrangement Scheme—with the aim of ‘further enhancing and improving our system’ in due...

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