HU SUN IRENE AND ANOTHER v. ZISHANG TRADING LTD AND OTHERS

HU SUN IRENE AND ANOTHER v. ZISHANG TRADING LTD AND OTHERS

The 19th Defendant's contemporaneous transactional evidence (payment proof, invoice, collection documents, bank activity and WhatsApp communications) made its pleaded defence of a bona fide arms-length purchase believable; there was no compelling indisputable evidence to defeat that defence on summary judgment, therefore the Master's summary judgment was set aside and conditional leave to defend was granted subject to the HK$1,600,000 remaining in court; costs orders were reserved accordingly.

Citation
[2023] HKCFI 1612
Parties
1st Plaintiff: HU SUN IRENE; 2nd Plaintiff: HESSLE INC; 1st Defendant: ZISHANG TRADING LIMITED; 2nd Defendant: Yianda Trading Co., Limited; 3rd Defendant: Wan Chunyan; 4th Defendant: Tang Yu-Cheng; 5th Defendant: Hong Cheng-Wei; 6th Defendant: Chu Jia-Yu; 7th Defendant: Haitaxi Company Limited; 8th Defendant: Yumei Metallic Technology Company Limited; 9th Defendant: Account Holder of Bank of China (Hong Kong) Limited WITH ACCOUNT NO. 89800158546; 10th Defendant: Mi Li Hua; 11th Defendant: Yang Li-Juan; 12th Defendant: Chan Yuen Shan; 13th Defendant: Shi Rong; 14th Defendant: Ye Penghui; 15th Defendant: Tieliefu; 16th Defendant: Tao Yuxiu; 17th Defendant: Hong Kong Superior Cloud E-Commerce Co., Limited; 18th Defendant: Gu Zhen; 19th Defendant: TIAN CHENG TRANDING CO.; 20th Defendant: Hong Kong Senlin Trading Company Limited; 21st Defendant: Good Wealthy International Limited; 22nd Defendant: USA King Tin Medical Company Limited; 23rd Defendant: Liu Peiguo; 24th Defendant: Gain Glory Investment Limited; 25th Defendant: Hong Kong Tianjin Trading Limited; 26th Defendant: Shi Yupan; 27th Defendant: HK Wukong Trading Limited; 28th Defendant: Liu Xiangbo; 29th Defendant: Wang Runqiang; 30th Defendant: Zhao Qifeng; 31st Defendant: Jiang Jiaqi; 32nd Defendant: Chen Yitian; 33rd Defendant: Sinofood Industries Co. Limited; 34th Defendant: Hid Asia Pacific Limited; 35th Defendant: Ever Digital Limited; 36th Defendant: Zuellig Pharma Limited; 37th Defendant: Yuk Entertainment Limited; 38th Defendant: Starpride Trading Ltd; 39th Defendant: Park Hyatt (HK) Development Co Ltd; 40th Defendant: Dragon Hero International Bussiness Consultant LimITED; 41st Defendant: Dewu Limited; 42nd Defendant: Liu Dongmei; 43rd Defendant: Maitong Silk (HK) Limited; 44th Defendant: Go Top High-Tech Company Limited; 45th Defendant: HK Yuanheng Industrial Co., Limited; 46th Defendant: Mu Feng International Limited; 47th Defendant: Granhow Limited; 48th Defendant: Zhu Yongqing; 49th Defendant: HK Bairuiyuan Trading Co., Limited; 50th Defendant: Kaisen International Co., Limited; 51st Defendant: Tjss E-Commerce Co. Limited; 52nd Defendant: Hitonecap Limited; 53rd Defendant: Zhao Hong
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
21 June 2023
Case Number
HCA1182/2021
Procedural Posture
Civil Claim for Recovery of Defrauded Funds / Appeal From Master's Summary Judgment (application for Summary Judgment to Be Heard Afresh)
Outcome
Appeal allowed; Master's Order and judgment dated 6 February 2023 set aside; conditional leave to 19th Defendant to defend granted subject to conditions; costs directed as below.
Legal Topics
Summary Judgment Under Order 14, Bona Fide Purchaser for Value Without Notice, Mareva Injunction, Bank Transfers and Tracing, Leave to Defend, Costs
Source Language
EN
Civil Commercial Fraud Procedure Injunctions Summary Judgment Under Order 14 Bona Fide Purchaser for Value Without Notice Mareva Injunction +3 more

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Parties

HU SUN IRENE

1st Plaintiff

HESSLE INC

2nd Plaintiff

ZISHANG TRADING LIMITED

1st Defendant

Yianda Trading Co., Limited

2nd Defendant

Wan Chunyan

3rd Defendant

Tang Yu-Cheng

4th Defendant

Hong Cheng-Wei

5th Defendant

Chu Jia-Yu

6th Defendant

Haitaxi Company Limited

7th Defendant

Yumei Metallic Technology Company Limited

8th Defendant

Account Holder of Bank of China (Hong Kong) Limited WITH ACCOUNT NO. 89800158546

9th Defendant

Mi Li Hua

10th Defendant

Yang Li-Juan

11th Defendant

Chan Yuen Shan

12th Defendant

Shi Rong

13th Defendant

Ye Penghui

14th Defendant

Tieliefu

15th Defendant

Tao Yuxiu

16th Defendant

Hong Kong Superior Cloud E-Commerce Co., Limited

17th Defendant

Gu Zhen

18th Defendant

TIAN CHENG TRANDING CO.

19th Defendant

Hong Kong Senlin Trading Company Limited

20th Defendant

Good Wealthy International Limited

21st Defendant

USA King Tin Medical Company Limited

22nd Defendant

Liu Peiguo

23rd Defendant

Gain Glory Investment Limited

24th Defendant

Hong Kong Tianjin Trading Limited

25th Defendant

Shi Yupan

26th Defendant

HK Wukong Trading Limited

27th Defendant

Liu Xiangbo

28th Defendant

Wang Runqiang

29th Defendant

Zhao Qifeng

30th Defendant

Jiang Jiaqi

31st Defendant

Chen Yitian

32nd Defendant

Sinofood Industries Co. Limited

33rd Defendant

Hid Asia Pacific Limited

34th Defendant

Ever Digital Limited

35th Defendant

Zuellig Pharma Limited

36th Defendant

Yuk Entertainment Limited

37th Defendant

Starpride Trading Ltd

38th Defendant

Park Hyatt (HK) Development Co Ltd

39th Defendant

Dragon Hero International Bussiness Consultant LimITED

40th Defendant

Dewu Limited

41st Defendant

Liu Dongmei

42nd Defendant

Maitong Silk (HK) Limited

43rd Defendant

Go Top High-Tech Company Limited

44th Defendant

HK Yuanheng Industrial Co., Limited

45th Defendant

Mu Feng International Limited

46th Defendant

Granhow Limited

47th Defendant

Zhu Yongqing

48th Defendant

HK Bairuiyuan Trading Co., Limited

49th Defendant

Kaisen International Co., Limited

50th Defendant

Tjss E-Commerce Co. Limited

51st Defendant

Hitonecap Limited

52nd Defendant

Zhao Hong

53rd Defendant

Procedural Posture

Civil Claim for Recovery of Defrauded Funds / Appeal From Master's Summary Judgment (application for Summary Judgment to Be Heard Afresh)

Legal Issues

  1. 1 Whether the 19th Defendant has a real or bona fide defence as a purchaser for value without notice
  2. 2 Whether summary judgment under Order 14 should be granted or whether leave to defend should be given
  3. 3 Whether to impose conditions when granting leave to defend

Ratio Decidendi

The 19th Defendant's contemporaneous transactional evidence (payment proof, invoice, collection documents, bank activity and WhatsApp communications) made its pleaded defence of a bona fide arms-length purchase believable; there was no compelling indisputable evidence to defeat that defence on summary judgment, therefore the Master's summary judgment was set aside and conditional leave to defend was granted subject to the HK$1,600,000 remaining in court; costs orders were reserved accordingly.

Court Disposition

Appeal allowed; Master's Order and judgment dated 6 February 2023 set aside; conditional leave to 19th Defendant to defend granted subject to conditions; costs directed as below.

Orders

  • Master's Order and judgment dated 6 February 2023 set aside
  • Conditional leave granted to the 19th Defendant to defend provided the sum of HK$1,600,000 previously paid into court by the 19th Defendant remains in court