CHAN CHUNG WA t/a WAH SING INDUSTRIAL CO. v. NG SIU KAM AND OTHERS t/a KA SHING PCB CO.

CHAN CHUNG WA t/a WAH SING INDUSTRIAL CO. v. NG SIU KAM AND OTHERS t/a KA SHING PCB CO.

The court granted the Prohibition Order under section 21B because there was an existing judgment for a specified sum and the defendants incurred the liabilities while in Hong Kong and travel frequently; the Mareva injunction was refused (adjourned sine die) because there was no evidence of identifiable assets within the jurisdiction to be frozen and a Mareva cannot be used merely as a tool to discover assets.

Citation
CHAN CHUNG WA t/a WAH SING INDUSTRIAL CO. v. NG SIU KAM AND OTHERS t/a KA SHING PCB CO.
Parties
Plaintiff (judgment Creditor): CHAN CHUNG WA trading as WAH SING INDUSTRIAL CO.; Defendant (judgment Debtor): NG SIU KAM trading as KA SHING PCB CO.; Defendant (judgment Debtor): NG NGAN KWAN trading as KA SHING PCB CO.; Defendant (judgment Debtor): CHUANG HUNG WET trading as KA SHING PCB CO.
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
18 August 2000
Case Number
HCA11184/1996
Procedural Posture
Civil Enforcement Application for Mareva Injunction and Prohibition Order / Hearing in Chambers and Ruling on Application; Prohibition Order Granted; Mareva Application Adjourned Sine Die With Liberty to Restore
Outcome
Prohibition Order granted; Mareva injunction adjourned sine die with liberty to restore.
Legal Topics
Mareva Injunction, Prohibition Order (s21 B High Court Ordinance), Asset Preservation, Jurisdictional Assets
Source Language
EN

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Parties

CHAN CHUNG WA trading as WAH SING INDUSTRIAL CO.

Plaintiff (judgment Creditor)

NG SIU KAM trading as KA SHING PCB CO.

Defendant (judgment Debtor)

NG NGAN KWAN trading as KA SHING PCB CO.

Defendant (judgment Debtor)

CHUANG HUNG WET trading as KA SHING PCB CO.

Defendant (judgment Debtor)

Procedural Posture

Civil Enforcement Application for Mareva Injunction and Prohibition Order / Hearing in Chambers and Ruling on Application; Prohibition Order Granted; Mareva Application Adjourned Sine Die With Liberty to Restore

  1. 1 Whether a Mareva injunction can be granted absent identifiable assets in the jurisdiction
  2. 2 Whether a Mareva injunction may be used as a means to discover or 'flush out' assets by serving banks
  3. 3 Whether a Prohibition Order under section 21B of the High Court Ordinance is appropriate to prevent defendants leaving Hong Kong to frustrate enforcement

Ratio Decidendi

The court granted the Prohibition Order under section 21B because there was an existing judgment for a specified sum and the defendants incurred the liabilities while in Hong Kong and travel frequently; the Mareva injunction was refused (adjourned sine die) because there was no evidence of identifiable assets within the jurisdiction to be frozen and a Mareva cannot be used merely as a tool to discover assets.

Court Disposition

Prohibition Order granted; Mareva injunction adjourned sine die with liberty to restore.

Orders

  • Prohibition Order under section 21B of the High Court Ordinance granted to prevent the named defendants from leaving Hong Kong to facilitate enforcement of the judgment.
  • Application for Mareva (freezing) injunction adjourned sine die with liberty to restore.