The High Court in London is being asked to enforce the decision of the Beth Din, the court which decides civil or religious issues among Orthodox Jews.
The Beth Din awarded Gateshead businessman Jerry Fried more than £1 million in December 2009, when it ordered company director David Zadok Baumgarten to pay Mr Fried £920,550.43. Mr Fried is also seeking interest of £109,558.11.
Mr Fried says he lent £920,550.454 to Mr Baumgarten but that a dispute arose between the two men over the payment of dividends amounting to £330,490.21.
They agreed to take their dispute to arbitration, and agreed to abide by the Beth Din's decision, a High Court claim says. But Mr Fried accuses Mr Baumgarten of failing to pay the money ordered by the Beth Din, and in an unusual move, has turned to the High Court, where he is seeking to enforce its decision.
The Beth Din awarded Mr Fried payment of the sum he claimed, and said the money should be paid by January 31 2010.
But Mr Baumgarten argued that he could not pay, as he had no means, and he was ordered to pay a monthly sum of £1,063.33.
Despite repeated assurances, he refused to co-operate, and failed to disclose his assets, or give permission for his professional advisors to be contacted by the Beth Din, the claim states.
Rabbi M Lawrence of the Beth Din gave Mr Fried permission to enforce the court's decision in the High Court, and gave him the right to put a charge on two properties owned by Mr Baumgarten in north west London.
The claim was issued by Aryeh Kramer of solicitors Waller Pollins.