X AND ANOTHER v. ZPRC AND ANOTHER

X AND ANOTHER v. ZPRC AND ANOTHER

The Court found it has jurisdiction under section 21L of the High Court Ordinance and that ZHK is a necessary and proper party under Order 11 r1; the arbitration clauses are wide and can extend to affiliates including Y; however, because the existence and validity of the Guarantee and arbitration agreements are...

Source-derived case information.

Citation
[2020] HKCFI 631
Parties
1st Plaintiff: X; 2nd Plaintiff: Y; 1st Defendant: ZPRC; 2nd Defendant: ZHK
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
7 May 2020
Case Number
HCCT60/2019
Procedural Posture
Construction and Arbitration Proceedings (anti Suit Injunction) / Substantive Hearing of the Originating Summons
Outcome
Interim injunctive relief continued and interim anti-suit relief granted; application for permanent injunctions refused
Legal Topics
Anti Suit Injunction, Jurisdiction Under High Court Ordinance S21 L, Order 11 Rule 1 Leave to Serve Out, Competence Competence, Parallel Foreign Court Jurisdiction
Source Language
en
Arbitration Civil Procedure Private International Law Contract Law Injunctions Anti Suit Injunction Jurisdiction Under High Court Ordinance S21 L Order 11 Rule 1 Leave to Serve Out +2 more

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Summary, issues, holding and outcome

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Parties

X

1st Plaintiff

Y

2nd Plaintiff

ZPRC

1st Defendant

ZHK

2nd Defendant

Procedural Posture

Construction and Arbitration Proceedings (anti Suit Injunction) / Substantive Hearing of the Originating Summons

Legal Issues

  1. 1 Whether the Court has jurisdiction under section 21L of the High Court Ordinance and Order 11 rule 1 RHC to grant anti-suit relief
  2. 2 Whether it is just and convenient to grant a permanent injunction restraining PRC proceedings in breach of the arbitration agreements
  3. 3 Whether the arbitration agreements extend to affiliates including Y

Ratio Decidendi

The Court found it has jurisdiction under section 21L of the High Court Ordinance and that ZHK is a necessary and proper party under Order 11 r1; the arbitration clauses are wide and can extend to affiliates including Y; however, because the existence and validity of the Guarantee and arbitration agreements are disputed and the arbitral tribunal (properly constituted) is better placed to determine those factual and credibility issues, it is not just and convenient to grant the permanent injunctions sought. The Court therefore continued the interim injunction against ZPRC (covering PRC1) and granted interim anti-suit relief in relation to PRC2 pending determination by the arbitral tribunal...

Court Disposition

Interim injunctive relief continued and interim anti-suit relief granted; application for permanent injunctions refused

Orders

  • Continue Interim Injunction against ZPRC restraining PRC1 until determination by the arbitral tribunal in the Arbitration or until further order of the Court
  • Supplemental Order that ZPRC shall perform all acts required by paragraph 1(a) of the Interim Injunction within 7 days of service of this Judgment