Read the full judgment text of HCCT 66/2020 on BabelCite. This 高等法院原訟法庭 judgment was delivered on 4 December 2020 before Hon K Yeung J in Chambers.
Arbitration — Interim Anti-suit Injunction — Variation — Jurisdictional challenges in Mainland proceedings — Whether defendant may respond to jurisdictional challenges and seek adjournment or stay while subject to interim injunction. The defendant commenced four proceedings in the Nantong Intermediate People’s Court (NIPC) against certain plaintiffs identified as WFOEs. The NIPC fixed substantive hearing dates without consultation. The plaintiffs obtained an interim anti-suit injunction restraining the defendant from proceeding in the Mainland actions, in breach of the arbitration agreement and pending arbitration in Hong Kong. WFOEs later applied to the NIPC to challenge jurisdiction, aiming to prevent the hearing. The defendant applied to vary the interim injunction to be allowed to respond to the jurisdictional challenge and seek adjournment or stay of the Mainland proceedings. The court recognized the procedural rules in the Mainland that hearing on the merits cannot proceed while jurisdictional challenges are pending. Balancing the risk of injustice to both sides, the court varied the injunction to grant defendant liberty first to seek stay or adjournment of the Mainland proceedings including jurisdictional challenges, and if refused, to respond to such challenges, thereby maintaining the injunction’s purpose while mitigating procedural risks. The remainder of the summons concerning discharge of the injunction and fortification was adjourned for substantive hearing. The court ordered the defendant may attend and participate in the jurisdictional challenge hearing fixed by the NIPC on 7 December 2020. The interlocutory order was thus refined to better balance procedural fairness in cross-border arbitration-related litigation.
Legal issues: Variation of interim anti-suit injunction
Outcome: The court varied the interim anti-suit injunction to permit the defendant first to seek stay or adjournment of the Mainland proceedings, and if unsuccessful, to respond to the WFOEs’ jurisdictional challenge before the NIPC.
Cites 1 case