Divisional Court considers interim relief for first time in National Security and Investment Act 2021 regime

10/02/25

The Divisional Court (Singh LJ and Chamberlain LJ) has handed down judgment in R (FTDI Holding Ltd) v Chancellor of the Duchy of Lancaster [2025] EWHC 241 (Admin), following an application for interim relief by the Claimant (“FTDIHL”).

Pursuant to new powers under the National Security and Investment Act 2021, the Chancellor of the Duchy of Lancaster (the “CDL”) has ordered FTDIHL to sell its ownership in a company known as FTDI - a semiconductor devices company specialising in USB technology - on the basis of purported national security concerns. FTDIHL has brought a judicial review challenging that decision but, concerned that it would suffer irremediable prejudice before the determination of its claim, it also made an application for interim relief.

Following a one-day hearing in January 2025, the Divisional Court has now handed down judgment in which it sets out the appropriate principles to be applied when considering granting interim relief as part of this regime and in the national security context more generally. As part of the American Cyanamid test, it rejected the argument that a party would have to demonstrate a “strong prima facie case” in every public law case instead of a “serious issue to be tried” (as a threshold test). Nevertheless, the merits of a case would be particularly relevant at the balance of convenience stage. As to that, it found that where one of the interests in play is national security, a Court  “must show great respect to the judgment of the executive about whether the relevant risk is made out and about the weight to be attached to it” (para 40). As such, the “the public interest weighs heavily against the grant of interim relief” (para 42). The result was that, although interim relief was refused, the Court ordered an expedited 4-day rolled-up hearing, currently listed for April 2025.

A copy of the judgment can be found here.