FENGLI GROUP (HONGKONG) CO., LTD v. HT STEEL (WORLD) INTERNATIONAL TRADE HOLDING CO., LTD

FENGLI GROUP (HONGKONG) CO., LTD v. HT STEEL (WORLD) INTERNATIONAL TRADE HOLDING CO., LTD

The judge declined to make the garnishee orders nisi absolute or to vary the Mareva injunctions because, taken cumulatively, the timing anomalies, lack of objective documentary evidence of loan terms, inconsistencies and evolution in affirmations, and the suspicious relationship between Debt Settlement Agreements...

Source-derived case information.

Citation
[2025] HKCFI 1747
Parties
Plaintiff in HCMP 1472/2020 and HCMP 1931/2020: 南京涵恩物資有限公司; 1st Defendant in HCMP 1472/2020 and HCMP 1931/2020: 吳惠娣 (WU HUI DI); 2nd Defendant in HCMP 1472/2020 and HCMP 1931/2020: 吳立 (WU LI); Plaintiff / Judgment Creditor in HCA 1014/2021: FENGLI GROUP (HONGKONG) CO., LIMITED; Plaintiff / Judgment Creditor in HCA 1601/2021: READY SUCCESS GROUP LIMITED; Defendant / Judgment Debtor in HCA 1014/2021 & HCA 1601/2021: HT STEEL (WORLD) INTERNATIONAL TRADE HOLDING CO., LIMITED; Garnishee in HCA 1014/2021 & HCA 1601/2021: BANK OF CHINA (HONG KONG) LIMITED
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
28 April 2025
Case Number
HCA1014/2021
Procedural Posture
Garnishee Proceedings and Applications to Vary Mareva Injunctions; Enforcement of Default Judgments and Registration of Mainland Judgment / Interlocutory Hearing on Garnishee Orders Nisi and Variation Summonses; Further Pleadings and Directions Ordered Pending Trial
Outcome
Garnishee orders nisi not made absolute; Mareva injunctions not varied; further pleadings and directions ordered and consolidated trial directed to determine bona fides issue
Legal Topics
Bona Fides of Judgment Debt, Mareva Injunction Variation, Garnishee Order, Default Judgment Scrutiny, Inter‑company Transfers, Debt Settlement Agreements, Collusion/abuse of Process
Source Language
en
Civil Procedure Enforcement of Foreign Judgments Injunctions Garnishee Proceedings Corporate Restructuring Banking and Asset Preservation Bona Fides of Judgment Debt Mareva Injunction Variation +5 more

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Parties

南京涵恩物資有限公司

Plaintiff in HCMP 1472/2020 and HCMP 1931/2020

吳惠娣 (WU HUI DI)

1st Defendant in HCMP 1472/2020 and HCMP 1931/2020

吳立 (WU LI)

2nd Defendant in HCMP 1472/2020 and HCMP 1931/2020

FENGLI GROUP (HONGKONG) CO., LIMITED

Plaintiff / Judgment Creditor in HCA 1014/2021

READY SUCCESS GROUP LIMITED

Plaintiff / Judgment Creditor in HCA 1601/2021

HT STEEL (WORLD) INTERNATIONAL TRADE HOLDING CO., LIMITED

Defendant / Judgment Debtor in HCA 1014/2021 & HCA 1601/2021

BANK OF CHINA (HONG KONG) LIMITED

Garnishee in HCA 1014/2021 & HCA 1601/2021

Procedural Posture

Garnishee Proceedings and Applications to Vary Mareva Injunctions; Enforcement of Default Judgments and Registration of Mainland Judgment / Interlocutory Hearing on Garnishee Orders Nisi and Variation Summonses; Further Pleadings and Directions Ordered Pending Trial

Legal Issues

  1. 1 Who bears the burden to prove the bona fides of judgment debts for variation of a Mareva injunction and making garnishee orders absolute
  2. 2 Whether the circumstances surrounding the judgment debts give rise to sufficient suspicion to warrant investigation and trial rather than immediate enforcement
  3. 3 Whether the garnishee orders nisi should be made absolute and Mareva injunctions varied to allow release of funds

Ratio Decidendi

The judge declined to make the garnishee orders nisi absolute or to vary the Mareva injunctions because, taken cumulatively, the timing anomalies, lack of objective documentary evidence of loan terms, inconsistencies and evolution in affirmations, and the suspicious relationship between Debt Settlement Agreements and Mainland litigation raised sufficient doubt about the bona fides of the judgment debts to require pleadings, evidence and trial rather than immediate enforcement.

Court Disposition

Garnishee orders nisi not made absolute; Mareva injunctions not varied; further pleadings and directions ordered and consolidated trial directed to determine bona fides issue

Orders

  • Nanjing Hanen be joined as an intervener to the garnishee proceedings in HCA 1014/2021 and HCA 1601/2021
  • The Judgment Creditors be joined as an intervener to HCMP 1472/2020 and HCMP 1931/2020 for the purpose of the Variation Summonses