LEE BOON CHEAN v. ALFRED KAO AND OTHERS

LEE BOON CHEAN v. ALFRED KAO AND OTHERS

Proper procedure is to pursue the challenge within the original proceedings (or by amendment) and, on the facts, where circumstances give rise to suspicion the onus is on the party seeking to extract funds subject to a Mareva injunction to satisfy the court of the genuineness of the debt; consent judgment is not...

Source-derived case information.

Citation
LEE BOON CHEAN v. ALFRED KAO AND OTHERS
Parties
1st Plaintiff / 1st Applicant: KANEMATSU-GOSHO (H.K.) LTD.; 2nd Plaintiff / 2nd Applicant: NICHIMEN CORPORATION; 1st Defendant / Plaintiff (hca 8146): LEE BOON CHEAN; 2nd Defendant / Defendant (hca 8146): ALFRED KAO; 3rd Defendant / Garnishee: LIU CHONG HING BANK LIMITED
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
30 April 1985
Case Number
HCA8146/1984
Procedural Posture
Interlocutory Applications Arising From Mareva Injunction and Garnishee Proceedings / Ruling on Amended Summons for Discovery, Interrogatories and Directions (adjourned)
Outcome
Applicants' amended application for discovery and interrogatories granted; bank permitted limited set-off and costs deduction and ordered to pay balance into a joint solicitors' account; matter adjourned to 17 May 1985; costs reserved; no undertaking in damages ordered for the adjournment period.
Legal Topics
Mareva Injunction, Garnishee Order, Discovery, Interrogatories, Stay of Proceedings, Consent Judgment, Collusion
Source Language
en
Civil Procedure Injunctions Contract Fraud Banking Garnishee Proceedings Mareva Injunction Garnishee Order +5 more

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Parties

KANEMATSU-GOSHO (H.K.) LTD.

1st Plaintiff / 1st Applicant

NICHIMEN CORPORATION

2nd Plaintiff / 2nd Applicant

LEE BOON CHEAN

1st Defendant / Plaintiff (hca 8146)

ALFRED KAO

2nd Defendant / Defendant (hca 8146)

LIU CHONG HING BANK LIMITED

3rd Defendant / Garnishee

Procedural Posture

Interlocutory Applications Arising From Mareva Injunction and Garnishee Proceedings / Ruling on Amended Summons for Discovery, Interrogatories and Directions (adjourned)

Legal Issues

  1. 1 Proper procedure to challenge garnishee/consent judgment (stay in original proceedings v separate action)
  2. 2 Whether onus lies on creditor/intervener to show genuineness of debt conflicting with Mareva policy
  3. 3 Whether a consent judgment conclusively establishes genuineness of the debt

Ratio Decidendi

Proper procedure is to pursue the challenge within the original proceedings (or by amendment) and, on the facts, where circumstances give rise to suspicion the onus is on the party seeking to extract funds subject to a Mareva injunction to satisfy the court of the genuineness of the debt; consent judgment is not determinative in suspicious circumstances, therefore the court granted interrogatories and discovery directed to the creditor, ordered limited bank directions, adjourned the matter and declined to require an undertaking in damages for the short adjournment.

Court Disposition

Applicants' amended application for discovery and interrogatories granted; bank permitted limited set-off and costs deduction and ordered to pay balance into a joint solicitors' account; matter adjourned to 17 May 1985; costs reserved; no undertaking in damages ordered for the adjournment period.

Orders

  • Leave granted to applicants to serve interrogatories on Mr. Lee within 14 days
  • Order for discovery in the terms sought by applicants (amended paragraph 4) granted