Read the full judgment text of HCCT 35/2019 & HCCT 36/2019 on BabelCite. This 高等法院原訟法庭 judgment was delivered on 23 April 2020 before Hon Mimmie Chan J.
Arbitration enforcement — Court of First Instance considered enforcement of CIETAC arbitral awards against Zhang Lan, Grand Lan Holdings Group (BVI) Ltd, and Qiao Jiang Lan Development Ltd. Zhang was earlier found in contempt for breaching injunctions and failing to disclose assets and imprisoned. The parties disputed the validity of the awards including tribunal composition under the Arbitration Ordinance (Cap 609) and CIETAC Rules 2012. The Court applied principles from CWG v MH to impose a Hadkinson order on Zhang requiring full compliance with asset disclosure before her application to set aside enforcement orders could be heard. Zhang’s appeal against contempt was pending but had not been actively pursued. The Court held the Arbitration Clause modified the CIETAC Rules to govern arbitrator appointment, rejecting Respondents’ claim that Article 27(3) applied mandating CIETAC appoint all arbitrators. The arbitral tribunal was properly constituted. Security was ordered against the 1st to 3rd Respondents before staying enforcement summons pending Mainland court judgment, conditioned on payment of 40% of award sum and costs. Failure to comply would result in dismissal. The Court emphasized the risk of asset dissipation due to lack of credible disclosure. Costs on indemnity basis were ordered against Zhang for the Hadkinson application.
Legal issues: Whether Hadkinson Order should be made against Zhang · Whether security should be ordered against R2 and R3 as condition for adjournment of setting aside enforcement orders
Outcome: Hadkinson Order granted against Zhang; security ordered from 1st, 2nd, and 3rd Respondents to stay enforcement summons; summons adjourned for 3 months on condition of security; dismissal of summons if security not paid timely; costs ordered against Zhang on indemnity basis.
Cited by 3 cases · Cites 2 cases