Read the full judgment text of CACV 600/2025 on BabelCite. This Court of Appeal judgment was delivered on 21 October 2025 before Hon Chu VP, Anthony Chan JA.
Civil procedure — Arbitration — Interim anti-suit injunction (ASI) — Construction of arbitration clause — Effect of foreign winding-up proceedings on arbitration agreement — Bona fide defence — Abuse of process. The Plaintiff, a Cayman Islands company acting as guarantor for term loans borrowed from the Defendant bank, sought an interim anti-suit injunction to restrain winding-up proceedings in the Cayman Islands allegedly breaching an arbitration agreement specifying disputes be finally resolved by HKIAC arbitration seated in Hong Kong. The Recorder dismissed the injunction application, construing the clause narrowly to require foreign proceedings to finally resolve disputes to constitute breach and finding the Plaintiff’s defence hopeless and frivolous. On appeal, the Court of Appeal found the Plaintiff’s construction of 'finally resolved' reasonably arguable. However, the Court held that the merits of the defence are relevant, rejecting the Plaintiff’s assertion that merits were irrelevant, and upheld the Recorder’s conclusion of hopeless defence due to evidence including failed insurance premium payments undermining estoppel claims. The ASI application failed at the threshold of having a bona fide defence to justify injunction. Summons dismissed with costs to the Defendant, with costs to be assessed on paper according to a defined timetable.
Legal issues: Construction of Arbitration Agreement · Reliance on Cayman Islands Law in Construction · Relevance of Underlying Merits to ASI · Merits of Plaintiff’s Defence
Outcome: Summons for interim anti-suit injunction dismissed with costs to Defendant
Cited by 1 case · Cites 2 cases