Supreme Court overturns appeal decision in Drelle

Congrats to Mark Phillips KC on his persuasive advocacy in the Supreme Court last month which today (27 July 2026) resulted in the Supreme Court bringing back logic and common sense (based on sound legal principles of course).

Judgment in Servis-Terminal v Drelle was handed down today. The Court unanimously held that an unrecognised foreign judgment can indeed support a statutory demand and subsequent bankruptcy petition. A link to the judgment is here.

The Court commented about the position regarding unregistered (registrable) judgments, but this was not argued before the Court so there is hopefully a future fight yet to be had regarding such judgments.

We will do a fuller article after the Summer break regarding the Supreme Court's analysis of the position regarding unregistered (registrable) judgments. Notably, the Isle of Man High Court and Appeal Division have adopted a different approach compared to the English Court of Appeal in relation to such judgments. Google “Drelle Plot Twist” or "Drelle Maher Law" to read more about the Isle of Man Courts’ approach to this issue.

Our previous article on Drelle can be found here.

For more information on how Maher Law’s specialist dispute resolution team can assist in relation to Isle of Man insolvency and other Chancery litigation, please contact Tom Maher at tom@maher.im.

27 July 2026