Read the full judgment text of HCCT 60/2019 on BabelCite. This 高等法院原訟法庭 judgment was delivered on 14 November 2019 before Hon Mimmie Chan J in Chambers.
Arbitration Law — Anti-suit injunction — Jurisdiction under Arbitration Ordinance section 45 and High Court Ordinance section 21L — Interim measures — Enforcement of arbitration agreements — Breach by foreign proceedings — Validity disputes of arbitration agreement — Role of supervisory court and tribunal jurisdiction — Application against non-contracting third parties — Urgency and procedural fairness. The Plaintiffs, GM1 and GM2, commenced arbitration proceedings against Defendant KC under a Guarantee containing an arbitration clause. Defendant commenced parallel proceedings in the Mainland court in breach of the arbitration agreement. The Court considered whether it had jurisdiction to grant an anti-suit injunction under section 45 of the Arbitration Ordinance or only under section 21L of the High Court Ordinance and concluded that the injunction fell within section 45's scope as an interim measure to protect the arbitral process. The Court further held that anti-suit injunctions can extend to related claims against a non-contracting party (GM2) when claims relate to the arbitration agreement. Regarding disputes over the validity of the arbitration agreement, the Court recognized the supervisory role of the Hong Kong court and left validity to be initially decided by the arbitral tribunal. The Court accepted urgent interim relief was justified despite procedural formalities absent, given imminent service of foreign proceedings and the need to maintain arbitration exclusivity. Accordingly, the Court granted the interim injunction restraining the Defendant from pursuing Mainland or other foreign proceedings until the substantive hearing, reserving costs to be paid in the cause.
Legal issues: Jurisdiction to grant anti-suit injunction under Arbitration Ordinance section 45 · Applicability of anti-suit injunction regarding disputes with non-contracting party · Validity dispute of arbitration agreement and proper forum for determination · Urgency and procedural fairness for granting interim injunction
Outcome: Interim anti-suit injunction granted restraining Defendant from prosecuting Mainland Proceedings or other foreign proceedings in breach of the arbitration agreement pending substantive hearing; costs of interim hearing reserved to be paid in the cause.
Cited by 2 cases · Cites 1 case