Read the full judgment text of CACV 341/2007 on BabelCite. This 高等法院上訴法庭 judgment was delivered on 15 November 2007 before Hon. Yuen JA.
Arbitration Ordinance (Cap 341) s.2GC — contractual dispute involving international companies over share purchase payments in RMB and HKD with tax indemnity — Mainland freezing order relating to misappropriated company assets — Hong Kong injunction to restrain Mainland proceedings — material non-disclosure in ex parte injunction application regarding tax liability — anti-suit injunction principles and sovereignty of Mainland court — Court of Appeal grants stay of execution pending appeal against order releasing shares used as security for Mainland freezing order. The parties, BVI companies, entered agreements for share sales of a Hong Kong company whose sole asset was shares in a Mainland developer. Payment was made in RMB with conditions for HKD payment and corresponding tax liabilities. A freezing order was granted in Mainland litigation to which Hong Kong proceedings sought injunctive relief. The Deputy Judge discharged ex parte injunctions for material non-disclosure, regranted limited orders releasing shares as security, but the Court of Appeal found the order improperly interfered with ongoing Mainland proceedings. Stay pending appeal granted. Costs related to expedited hearing addressed accordingly.
Legal issues: Jurisdiction and interference with Mainland Freezing Order · Material non-disclosure in ex parte application · Validity of the 1st and 2nd Defendants’ right to require payment in HKD
Outcome: Stay of the judge’s regranted order pending appeal granted.
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