Read the full judgment text of HCCT 12/2007 on BabelCite. This 高等法院原訟法庭 judgment was delivered on 9 October 2007 before Deputy High Court Judge L. Chan.
Procedure — Stay of injunction order — Arbitration proceedings — Freezing order security — Provision of alternative security — Costs — The dispute concerns the sale and transfer of the 3rd defendant's shares and potential tax liabilities, referred to arbitration which awaited interim orders. The defendants applied to stay execution of the High Court injunction order pending arbitration or appeal. The court held that although empowered by O.45 r.11, it declined an interim stay due to uncertainty of arbitration timing and merits. Stay pending appeal was refused for lack of reasonable prospects of success and absence of evidence that appeal would be rendered nugatory without stay. The court held defendants must provide alternative security if Huigu shares were released to maintain the freezing order, as freezing order benefits defendants and plaintiffs held beneficial interests in the shares. The compliance time for the injunction order was revised to 10 days post service, considering procedural fairness. Costs were ordered against defendants to plaintiffs, to be taxed.
Legal issues: Stay of execution of injunction order · Provision of security to maintain freezing order · Revision of timing for compliance with injunction order
Outcome: The application for stay of execution pending appeal was dismissed; the time for compliance with the injunction order was revised; costs were ordered against the 1st and 2nd defendants.
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