Read the full judgment text of HCCT 29/2019; HCA 1434/2019 on BabelCite. This 高等法院原訟法庭 judgment was delivered on 1 June 2020 before Hon Mimmie Chan J.
Construction and arbitration injunction — Mareva injunction — Alleged forgery of signature on shareholders’ agreements — Whether good arguable case exists — Risk of dissipation of assets held in nominee’s name — Share transfer and property transfer during litigation period — Court's inherent jurisdiction under section 21L High Court Ordinance and Chabra jurisdiction — Injunctions granted — Costs ordered against Daughter for refusing to accept continuing Undertaking. Skyhigh Investment Limited applied for injunctive relief and disclosure orders against Yu Jun, Yu Mengying and Yujime Investment Management Limited in aid of arbitration for breach of shareholders agreements. Yu Mengying denied signature authenticity alleging forgery by Yu Jun. The Court held that the issue of forgery raised disputed facts unsuitable for interlocutory determination and that there was a good arguable case against the Daughter based on dealings with assets registered in her name and control exercised by Yu Jun. The Court further found a real risk of dissipation given Yu Jun’s control and previous asset transfers. Consequently, Mareva injunctions and disclosure orders were granted. Costs for proceedings after an unaccepted offer to continue an undertaking were ordered against the Daughter. The matter highlights principles on interlocutory injunctions, evidentiary thresholds for forgery at interlocutory stages, and risk assessment for asset freezing measures in Hong Kong's arbitration and construction disputes.
Legal issues: Existence of a good arguable case against the Daughter · Real risk of dissipation of assets · Costs incurred after offer to continue Undertaking
Outcome: The Court granted Mareva injunction and disclosure orders against Yu Mengying; the summonses were not withdrawn. The Daughter ordered to pay costs incurred after 8 October 2019 with certificate for two counsel, with the remainder costs in the cause.
Cited by 3 cases · Cites 5 cases