Read the full judgment text of HCCT 7/2018 on BabelCite. This 高等法院原訟法庭 judgment was delivered on 18 July 2018 before Hon Mimmie Chan J.
Arbitration enforcement — Stay of enforcement — Cross-claim in separate Mainland proceedings — Security for award — Arbitration Ordinance (Cap 609) ss.84 and 92 — Construction contract disputes. Baosteel Engineering & Technology Group Company Limited was granted leave in Hong Kong to enforce an arbitral award worth RMB 19.44 million against China Zenith Chemical Group Limited and its subsidiary for unpaid construction fees. China Zenith sought a stay of enforcement based on a separate Mainland court claim by the subsidiary for defective design damages exceeding the award sum, claiming set-off. The court found the cross-claim fell outside the arbitration scope and delayed Mainland proceedings did not justify withholding enforcement. A temporary six-month stay was granted conditional on provision of security by China Zenith to protect plaintiff's interests. Costs were ordered against China Zenith.
Legal issues: Whether a stay of enforcement of an arbitral award should be granted
Outcome: Temporary stay of enforcement granted for six months conditional on security; costs awarded to plaintiff
Cites 2 cases