Read the full judgment text of HCCT 69/2023 on BabelCite. This 高等法院原訟法庭 judgment was delivered on 30 May 2024 before Hon Mimmie Chan J.
Arbitration — Security for costs — Setting aside arbitral award — Jurisdiction of the Court — Order 23 RHC — Order 73 RHC — Arbitration Ordinance Cap 609 — National security law — Shareholders’ agreement dispute — Plaintiffs resident outside Hong Kong — Plaintiffs’ assets not readily realizable in Hong Kong — Court’s inherent jurisdiction and procedural rules — Plaintiffs challenged Award alleging national security issues and procedural unfairness in arbitration — Defendants applied for security for costs — Issue whether Court has jurisdiction to order security for costs in setting aside proceedings absent power under Schedule 2 to Arbitration Ordinance — Held Court does have jurisdiction under Order 23 RHC; Order 73 RHC does not exclude operation of Order 23 — Soleh Boneh principles applicable — Plaintiffs’ shareholding was restricted and 2nd Defendant in liquidation with no identifiable assets within Hong Kong — Plaintiffs’ claims lack high probability of success — Security for costs of HK$2 million ordered with stay of proceedings pending payment or bank guarantee — Costs of summons to be paid by Plaintiffs on indemnity basis.
Legal issues: Court's jurisdiction to order security for costs under Order 23 RHC · Applicability of Order 73 to exclude other High Court Rules · Whether s 86(4) of the Arbitration Ordinance applies · Appropriateness of ordering security under Order 23 in this case
Outcome: Security for costs ordered against Plaintiffs; proceedings stayed pending security payment
Cited by 1 case · Cites 5 cases