Read the full judgment text of HCCT 54/2018 on BabelCite. This 高等法院原訟法庭 judgment was delivered on 15 May 2019 before Hon Mimmie Chan J in Chambers.
Construction and Arbitration Proceedings – Shareholders Agreement arbitration clause – Whether Defendants minority shareholders parties to arbitration agreement – Court held arbitration clause includes Defendants despite appointment rights scheme – Plaintiffs’ setting aside application alleging no arbitration agreement, tribunal composition defect, failure to plead case, findings beyond evidential basis and public policy refusal of enforcement rejected – Errors of law or fact and unpleaded claims do not invalidate awards – Security application in enforcement proceedings – Court ordered security of 50% of Award sum to be provided given Plaintiffs’ evasive asset disclosure, asset transfers post-notice, and risk of dissipation – Dishonest Person Listing on Mainland China and litigation history undermined Plaintiffs’ credibility – Procedural fairness observed with Plaintiffs given opportunity to oppose – Plaintiffs’ failure to furnish security to lead to dismissal of setting aside application – Costs to Defendants on indemnity basis.
Legal issues: Existence and scope of arbitration agreement · Whether Defendants failed to plead and particularise their case, affecting Plaintiffs’ fair hearing · Whether tribunal made findings without evidential basis and in excess of jurisdiction · Whether the Arbitration Award should be set aside on public policy grounds · Security for Enforcement Application – Factors for Granting Security
Outcome: The court found the Award to be manifestly valid, dismissed the primary grounds to set it aside, and ordered the Plaintiffs to provide security as condition precedent to continuation of the setting aside application; failure to do so would result in dismissal with costs on an indemnity basis.
Cited by 1 case · Cites 4 cases