A.C. AGROBIOLOGICAL CORPORATION AND ANOTHER v. BUCK SALES LTD AND ANOTHER

A.C. AGROBIOLOGICAL CORPORATION AND ANOTHER v. BUCK SALES LTD AND ANOTHER

No material non-disclosure was established so the 1st plaintiff's strike-out summons was dismissed; the 2nd plaintiff (Centro) was properly substituted as 3rd defendant because the co-plaintiffs' interests had become adverse; on the evidence there was a strong prima facie case of fraudulent abstraction and traceability of funds warranting discovery and continuation/grant of Mareva relief with safeguards (undertakings to banks); the court will impose specific service directions, a timetable for pleadings/discovery and order costs in favour of Centro.

Citation
A.C. AGROBIOLOGICAL CORPORATION AND ANOTHER v. BUCK SALES LTD AND ANOTHER
Parties
1st Plaintiff: A.C. AGROBIOLOGICAL CORPORATION; 2nd Plaintiff: CENTRO INTERNATIONALE HANDELSBANK AG; 1st Defendant: BUCK SALES LIMITED; 2nd Defendant: HUMPHREY BERNARD MAXWELL (also known as Reiner Morringer)
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
10 October 1985
Case Number
HCA4417/1985
Procedural Posture
Civil Commercial (mareva Injunction, Discovery, Tracing, Joinder) / Interlocutory/chambers Hearing on Summonses (pre Trial)
Outcome
1st plaintiff's strike-out summons dismissed; 2nd plaintiff (Centro) ordered to cease to be 2nd plaintiff and to become 3rd defendant; discovery and tracing orders granted (period amended); Mareva injunctions continued until trial; service directions and detailed timetable made; costs awarded to the 2nd...
Legal Topics
Mareva Injunction, Disclosure/discovery, Tracing of Funds, Joinder and Substitution, Service of Process, Costs
Source Language
EN
Equity Civil Procedure Commercial Law Banking Law Mareva Injunction Disclosure/discovery Tracing of Funds Joinder and Substitution +2 more

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Parties

A.C. AGROBIOLOGICAL CORPORATION

1st Plaintiff

CENTRO INTERNATIONALE HANDELSBANK AG

2nd Plaintiff

BUCK SALES LIMITED

1st Defendant

HUMPHREY BERNARD MAXWELL (also known as Reiner Morringer)

2nd Defendant

Procedural Posture

Civil Commercial (mareva Injunction, Discovery, Tracing, Joinder) / Interlocutory/chambers Hearing on Summonses (pre Trial)

Legal Issues

  1. 1 Whether the ex parte order joining the 2nd plaintiff should be set aside for material non-disclosure
  2. 2 Whether the 2nd plaintiff should be substituted as a 3rd defendant given adverse interests
  3. 3 Whether Mareva injunction and tracing/discovery orders should be granted or continued

Ratio Decidendi

No material non-disclosure was established so the 1st plaintiff's strike-out summons was dismissed; the 2nd plaintiff (Centro) was properly substituted as 3rd defendant because the co-plaintiffs' interests had become adverse; on the evidence there was a strong prima facie case of fraudulent abstraction and traceability of funds warranting discovery and continuation/grant of Mareva relief with safeguards (undertakings to banks); the court will impose specific service directions, a timetable for pleadings/discovery and order costs in favour of Centro.

Court Disposition

1st plaintiff's strike-out summons dismissed; 2nd plaintiff (Centro) ordered to cease to be 2nd plaintiff and to become 3rd defendant; discovery and tracing orders granted (period amended); Mareva injunctions continued until trial; service directions and detailed timetable made; costs awarded to the 2nd...

Orders

  • 1st plaintiff's summons to strike out the joinder dismissed
  • Order that 'the 2nd plaintiff hereafter do cease to be 2nd plaintiff and do become 3rd defendant in the action' (substitution)