XU SHENGHENG AND ANOTHER v. CHEUNG KWAN

XU SHENGHENG AND ANOTHER v. CHEUNG KWAN

The court continued the ex parte interim injunction in the same terms until trial or further order because there is a serious question to be tried on the alleged sale, pledge and subsequent transfer of the shares; the applicant's alleged non-disclosures were not established as material to the grant; and damages were an inadequate remedy given the practical difficulty of realising the large shareholding on the GEM board.

Citation
XU SHENGHENG AND ANOTHER v. CHEUNG KWAN
Parties
1st Plaintiff (original Action); 1st Defendant (by Counterclaim): Xu Shengheng; 2nd Plaintiff (original Action): Ever Sincere Investment Limited; Defendant (original Action); 1st Plaintiff (by Counterclaim): Cheung Kwan; 2nd Plaintiff (by Counterclaim): Financial International Holdings Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
5 March 2012
Case Number
HCA291/2009
Procedural Posture
Civil Dispute Involving Interim Injunction, Counterclaim and Securities / Application to Continue Ex Parte Interim Injunction (chambers)
Outcome
Ex parte interim injunction continued until trial or further order; costs ordered nisi
Legal Topics
Interim Injunction, Ex Parte Injunction, Counterclaim, Pledge of Shares, Disclosure Obligations, Notifiable Interest Under SFO, Material Non Disclosure, Adequacy of Damages
Source Language
EN
Securities Law Contract Equity Civil Procedure Interim Injunction Ex Parte Injunction Counterclaim Pledge of Shares +4 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 1 Party arguments 2 Amounts and remedies 5
Sign in to unlock

Parties

Xu Shengheng

1st Plaintiff (original Action); 1st Defendant (by Counterclaim)

Ever Sincere Investment Limited

2nd Plaintiff (original Action)

Cheung Kwan

Defendant (original Action); 1st Plaintiff (by Counterclaim)

Financial International Holdings Limited

2nd Plaintiff (by Counterclaim)

Procedural Posture

Civil Dispute Involving Interim Injunction, Counterclaim and Securities / Application to Continue Ex Parte Interim Injunction (chambers)

Legal Issues

  1. 1 Whether there is a serious question to be tried on the alleged sale, pledge and transfer of shares
  2. 2 Whether the applicant committed material non-disclosure in obtaining the ex parte injunction
  3. 3 Whether damages would be an adequate remedy such that injunction should not be continued

Ratio Decidendi

The court continued the ex parte interim injunction in the same terms until trial or further order because there is a serious question to be tried on the alleged sale, pledge and subsequent transfer of the shares; the applicant's alleged non-disclosures were not established as material to the grant; and damages were an inadequate remedy given the practical difficulty of realising the large shareholding on the GEM board.

Court Disposition

Ex parte interim injunction continued until trial or further order; costs ordered nisi

Orders

  • Continue the ex parte interim injunction in the same terms until trial or further order
  • Parties to fix another hearing (estimated two hours) to argue scope of the injunction and fortification of the undertaking