Our team: Mark Buckley
Mauritian based Rainbow Insurance Co Ltd.’s registration was suspended in 2007 by The Mauritian Financial Services Commission (FSC), regulators of local insurance companies, for capital inadequacy, solvency and liquidity.
Rainbow applied to the Supreme Court of Mauritius for judicial review of the suspension. The application was refused. Rainbow then appealed to the Privy Council in London.
Fladgate acted in the Privy Council appeal for Louis Appavoo, the provisional liquidator of Rainbow.
The case was important in order to help define the criteria on which the regulators are allowed to act and whether the “legitimate expectation” of Rainbow, to be treated fairly by a public authority, was complied with.
The Board of the Privy Council found that on the facts of this case, proper notice that statutory requirements for capital, solvency and liquidity that were to be complied with had been given to Rainbow by the regulator. The Board concluded that the FSC did not act unfairly to Rainbow in the events leading up to the suspension of its registration and the appeal was therefore dismissed.
Fladgate litigation partner Mark Buckley advised Louis Appavoo.