Read the full judgment text of HCCT 31/2012 on BabelCite. This 高等法院原訟法庭 judgment was delivered on 27 September 2012 before Mr Recorder A Chan, SC.
Construction and Arbitration Proceedings — Mareva injunction — Ex parte application — Alleged risk of dissipation of assets — Material non-disclosures — Leave to appeal — The plaintiff NCS CO, LIMITED applied ex parte for a worldwide Mareva injunction against defendant BAO HARVEST HOLDING LIMITED in relation to a US$1.4 million potential liability. The injunction was discharged on 6 September 2012 by the court on the grounds that there was no real risk of dissipation given Bao Harvest’s substantial business and financial position and that NCS had committed material non-disclosures in their ex parte application. On application for leave to appeal, the court held that the threshold to show a reasonable prospect of success was not met. The court reasoned that Bao Harvest’s financial strength and ongoing arbitration disfavoured a risk of asset dissipation, and NCS’s failure to conduct inquiries and properly disclose relevant facts, including the application of the without prejudice rule, justified discharge. Arguments of inadvertent non-disclosure were not raised below and could not be taken on appeal. Application for leave to appeal was dismissed with costs to Bao Harvest.
Legal issues: Whether there was a risk of dissipation of assets by Bao Harvest · Whether material non-disclosures affected the granting of the Mareva injunction
Outcome: Application for leave to appeal dismissed with costs to Bao Harvest
Cited by 3 cases