China Evergrande Group (in Liquidation) v. Hui Ka Yan and Others

Read the full judgment text of HCMP 1080/2024 on BabelCite. This High Court CFI judgment was delivered on 19 September 2025.

1. The background – factual and procedural – of these proceedings has been canvassed in a number of previous Decisions, and need not be repeated at any length here. For present purposes, the focus is on the position as between the Plaintiff (“CEG”) and 2 nd Defendant (“Mr Xia”) and the 8 th Defendant (“Madam He”). Madam He is the (only very recently divorced) wife of Mr Xia.

Cites 2 cases

Case No.HCMP 1080/2024[2025] HKCFI 4415
Court
High Court CFI
Date19 Sep 2025
Judge
Case Document
100%Judiciary

HCMP 1080/2024

[2025] HKCFI 4415

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF FIRST INSTANCE

MISCELLANEOUS PROCEEDINGS NO. 1080 OF 2024

________________________

  IN THE MATTER OF an application for injunctive relief under Section 21L of the High Court Ordinance (Cap. 4)

________________________

BETWEEN

  CHINA EVERGRANDE GROUP (中國恒大集團) (IN LIQUIDATION)        Plaintiff
  and  
  HUI KA YAN (許家印) 1st Defendant
  XIA HAIJUN (夏海鈞) 2nd Defendant
  DING YU MEI (丁玉梅) 3rd Defendant

________________

AND

HCA 551/2024

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF FIRST INSTANCE

ACTION NO. 551 OF 2024

________________________

BETWEEN

  CHINA EVERGRANDE GROUP (中國恒大集團) (IN LIQUIDATION)        Plaintiff
  and  
  HUI KA YAN (許家印) 1st Defendant
  XIA HAIJUN (夏海鈞) 2nd Defendant
  PAN DARONG (潘大榮) 3rd Defendant
  XIN XIN (BVI) LIMITED 4th Defendant
  DING YUMEI (丁玉梅) 5th Defendant
  YAOHUA LIMITED 6th Defendant
  EVEN HONOUR HOLDINGS LIMITED 7th Defendant
  HE KUN (何坤) 8th Defendant

________________

(Consolidated pursuant to the Order of Honourable Mr Justice Coleman

dated 12nd February 2025)

Before: Hon Coleman J in Chambers (Open to Public)
Date of Hearing: 17 September 2025
Date of Decision: 19 September 2025

___________________

D E C I S I O N

___________________

A.  Introduction

1.The background – factual and procedural – of these proceedings has been canvassed in a number of previous Decisions, and need not be repeated at any length here. For present purposes, the focus is on the position as between the Plaintiff (“CEG”) and 2nd Defendant (“Mr Xia”) and the 8th Defendant (“Madam He”). Madam He is the (only very recently divorced) wife of Mr Xia.

2.On 24 June 2024, Mr Xia was made subject to a Mareva injunction, and required to give ancillary asset disclosure (“Asset Disclosure Order”). Though time for compliance was extended pending an application to discharge the injunction (which failed), I subsequently set 21 February 2025 as the extended date for compliance with the Asset Disclosure Order.

3.As there was no such compliance, I issued two subsequent unless orders requiring compliance, failing which Mr Xia would be debarred from filing a Defence and defending the action. There were failures to comply with the unless orders, and the sanction was triggered.

4.For reasons explained in my previous Decisions, I then set 25 April 2025 and 17 June 2025 as extended dates for compliance. In purported compliance with the Asset Disclosure Order, Mr Xia filed his 3rd and 4th affirmations.

5.Since they were filed, it has become absolutely clear that neither the 3rd affirmation nor 4th affirmation in fact complied with the Asset Disclosure Order, and there were significant and deliberate non-disclosures. I accept Mr Manzoni’s submission that the disobedience extended far beyond the initial reluctance to give disclosure. Mr Xia has since acknowledged those facts, though he has offered an explanation and an apology.

6.However, on the basis that the 3rd and 4th affirmations had effected compliance with the Asset Disclosure Order, Mr Xia had applied by summons dated 7 July 2025 for relief from the sanction imposed, and for him to have leave to file and serve his Defence (“Relief Summons”). Substantive argument on the Relief Summons was fixed for 17 September 2025.

7.On 1 August 2025, I granted CEG’s ex parte Chabra application (“Chabra Injunction”) to enjoin certain assets held in the name of Madam He, a non-cause of action defendant (“NCAD”).

8.Subsequently, a further 8 summonses have been issued, also made returnable on or listed for argument on 17 September 2025. Therefore, the 9 summonses dealt with at that hearing were, listed by chronological reference to their date of issue:

(1)  Mr Xia’s Relief Summons.

(2)  CEG’s summons dated 1 August 2025, seeking the continuation of the Chabra Injunction (“Chabra Continuation Summons”).

(3)  CEG’s summons dated 4 August 2025, seeking (a) a declaration that Mr Xia had failed to comply with the Asset Disclosure Order, (b) a further affirmation from Mr Xia to give full and proper compliance with the Asset Disclosure Order obligations, (c) specific details and documentation and summaries in addition to or in the provision of the further affirmation, (d) an order for cross-examination of Mr Xia on matters of asset disclosure, (e) certain amendments to the original Injunction Order, and (f) an order that funds currently held in the account of Mr Xia’s solicitors be paid into Court (“Further Disclosure Summons”).

(4)  CEG’s summons dated 4 August 2025, seeking the appointment of the Liquidators of CEG as joint and several receivers and managers over the entire assets of Mr Xia (“Receivership Summons”).

(5)  Mr Xia’s summons dated 5 September 2025, seeking leave to file his reply affirmation out of time in further support of the Relief Summons (“EOT Summons”).

(6)  CEG’s summons dated 9 September 2025, seeking variations and extension of the Chabra Injunction (“Chabra Extension Summons”).

(7)  Mr Xia’s summons dated 10 September 2025, seeking leave to withdraw his Relief Summons (“Withdrawal Summons”).

(8)  Mr Xia’s summons dated 12 September 2025, seeking a variation of the Injunction Order in relation to the provision for spending on legal fees and representation (“Fees Provision Summons”).

(9)  Madam He’s summons dated 16 September 2025, seeking to set aside the Chabra Injunction (and various ancillary orders) (“Chabra Discharge Summons”).

9.At the end of the hearing, I indicated that I would give my decisions within two days, with reasons to be provided subsequently.

10.Including my orders and directions which I gave during the hearing, the following are my decisions and/or directions on each of the 9 summonses.

B.  Relief Summons

11.The Relief Summons is dismissed, with costs to CEG.

12.The question of the scale of costs, and any other ancillary points relating to costs, will be decided on paper, with submissions to be filed in accordance with a timetable to be agreed between Mr Manzoni and Mr Jat.

C.  Chabra Continuation Summons

13.The Chabra Injunction will be continued until the determination of the Chabra Discharge Summons, or until further order.

14.All questions of costs are reserved.

D.  Further Disclosure Summons

15.I decline to make the direction and/or declaration sought by paragraph 1 of the Further Disclosure Summons. Nevertheless, I record that it is clear – and it appears to have been correctly recognised by Mr Xia – that the sanction imposed under the unless orders has been triggered, and Mr Xia is debarred from filing a Defence and from defending the action.

16.I make an order in the terms of paragraphs 2 and 4.1 and 4.3 (save for a small amendment in the preamble to paragraph 4 to delete the reference to paragraph 3). For the avoidance of doubt, the relevant date for the required disclosure is on or before 4pm on 3 October 2025.

17.Whilst I decline to make an order in the terms of paragraph 3, the matters there set out can be treated as providing useful guidance to the ability for Mr Xia to provide full and proper compliance with the Asset Disclosure Order obligations.

18.Paragraphs 5 and 6 are adjourned sine die, with liberty to restore after the provision of the further disclosure required by the order made under paragraph 2 (and 4.1 and 4.3).

19.I make an order in the terms of paragraph 7.

20.I decline to make an order in the terms of paragraph 8. But I do so expressly on the basis that I do not preclude a renewed application in similar terms, should circumstances appear to warrant it.

21.The costs of the Further Disclosure Summons shall be paid by Mr Xia to CEG forthwith on an indemnity basis, to be taxed if not agreed.

E.  Receivership Summons

22.As to paragraph 1 of the Receivership Summons, I make an order for the appointment of joint and several receivers and managers over the entire assets and undertaking of Mr Xia in the terms of the amended annexure 1 to the summons, save with the following changes:

(1)  The Liquidators of CEG are not appointed as the receivers and managers. Instead, CEG should nominate two sets of receivers and managers independent from the Liquidators. The nomination should be made by 4pm on 24 September 2025, for any comment to be made by Mr Xia by 4pm on 26 September 2025, as to the identity of the receivers and managers to be appointed. I will then choose which of the nominated persons will be appointed.

(2)  Therefore, the names of the receivers and managers ultimately appointed by me shall be set out (in place of the names of the Liquidators in the current draft).

(3)  Any references to Madam He and assets held or registered in her name shall be deleted.

(4)  The reference to “by force, if necessary,” in paragraph 4.7 of the powers shall be deleted.

(5)  All references to the appointment of a supervising solicitor and any powers or interactions between such a person and the receivers shall be deleted.

(6)  The reference to the New Life Revocable Trust in item 3 of Schedule 2 shall be deleted.

23.In the circumstances of the appointment of independent receivers, there is no need for a supervising solicitor, and I therefore decline to make an order in the terms of paragraph 2 of the Receivership Summons.

24.I make orders in the terms of paragraphs 3, 4, 5, and 6 of the Receivership Summons.

25.That part of the Receivership Summons which – whether originally or by proposed amendment to the annexure – seeks the Receivership Order to cover or be extended in relation to the Chabra Assets or any other assets of Madam He or the New Life Revocable Trust is adjourned to the hearing of the Chabra Continuation Summons, paragraphs 1.1 and 1.4 of the Chabra Extension Summons, and the Chabra Discharge Summons.

26.I make an order in the terms of paragraph 7, relating to the costs of the application.

F.  EOT Summons

27.I dispose of the EOT Summons by making no order, as no order is necessary in light of the non-pursuit and the dismissal of the Relief Summons.

G.  Chabra Extension Summons

28.I make an order in terms of paragraphs 1.2, 1.3 and 2 of the Chabra Extension Summons.

29.Paragraphs 1.1 and 1.4 are adjourned to be dealt with together with and at the same hearing of the Chabra Discharge Summons.

30.All questions of costs are reserved.

H.  Withdrawal Summons

31.The Withdrawal Summons is dismissed, with costs to CEG.

32.The question of the scale of costs, and any other ancillary points relating to costs, will be decided on paper, with submissions to be filed in accordance with a timetable to be agreed between Mr Manzoni and Mr Jat.

I.  Fees Provision Summons

33.I dispose of the Fees Provision Summons by making no order, as no order is necessary in light of the agreement between the parties.

J.  Chabra Discharge Summons

34.The Chabra Discharge Summons shall be adjourned for argument (together with the Chabra Continuation Summons and paragraphs 1.1 and 1.4 of the Chabra Extension Summons) (together “Chabra Summonses”), which argument is fixed for 10am on 17 November 2025 (with one day reserved).

35.Madam He shall file her affirmation evidence as regards the Chabra Summonses, and that part of the Receivership Summons relating to her, by 4pm on 8 October 2025.

36.CEG shall file any affirmation evidence in opposition/reply by 4pm on 24 October 2025.

37.Madam He shall file her affirmation evidence limited to a reply on the Chabra Discharge Summons by 4pm on 7 November 2025.

38.No further affirmation evidence shall be filed without leave of the Court.

39.All questions of costs in respect of the matters to be argued on 17 November 2025 are reserved.

  (Russell Coleman)
Judge of the Court of First Instance
High Court

Mr Charles Manzoni SC, instructed by Karas So LLP, for the plaintiff

Mr Jat Sew Tong SC and Mr Martin Ho, instructed by ONC Lawyers, for the 2nd defendant

Mr Christopher Chain SC and Mr Lai Chun Ho, instructed by Deacons, for the 8th defendant

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