New Judgment – Manhattan Coffee Investment Holding v Mwagiru [2026] UKPC 21

Tom Smith KC and Paul Fradley appeared for the successful Respondent in Manhattan Coffee Investment Holding v Mwagiru [2026] UKPC 21.

The Privy Council (Lord Richards giving the judgment) has dismissed two appeals brought by Mr Mwagiru, a director of the company who had sought leave from the Mauritian courts to continue proceedings for and on behalf of the company despite the fact that it was in liquidation. The Privy Council noted that the provisions in the Mauritian Companies Act permitting derivative proceedings did not apply to companies in liquidation.

The Board considered the historical development of the jurisdiction to permit a person (other than a liquidator) to bring or continue proceedings for and on behalf of a company in liquidation. The jurisdiction appeared to be rarely exercised in England but was quite common in Australia and New Zealand and arose under the court’s inherent jurisdiction as well as statutory powers. The Board held that standing to invoke the jurisdiction was limited to those with an interest in the realisation and distribution of assets, namely creditors and (if there is likely to be a surplus) contributories. After considering recent decisions of the Supreme Court/Privy Council (Brake v The Chedington Court Estate Ltd [2023] UKSC 29 and Stevanovich v Richardson [2025] UKPC 18), the Board concluded that Mr Mwagiru, as a director, was not a person who had a legitimate interest in the relief sought.

The Board was also critical of the procedural unfairness which took place at first instance, with orders being made against the Respondents ex parte and without them having the opportunity to be heard.

Read the full judgment here