CHEN HONGQING v. MI JINGTIAN AND ANOTHER

CHEN HONGQING v. MI JINGTIAN AND ANOTHER

The court held that it had power under s45 of the Arbitration Ordinance and ss21L/21M Cap 4 to grant interim measures in aid of an arbitration outside Hong Kong and, on the facts, there was a serious issue to be tried, the shares were in jeopardy, and the balance of convenience favoured appointing receivers to preserve the status quo and facilitate the arbitral process; accordingly interim receivership and related relief were ordered in the terms sought in the originating summons.

Citation
CHEN HONGQING v. MI JINGTIAN AND ANOTHER
Parties
Plaintiff: Chen Hongqing; 1st Defendant: Mi Jingtian; 2nd Defendant: Zhao Liping; 3rd Defendant: Li Maohuan; 4th Defendant: Yu Yuchuan; Intervener: Asia Cement Corporation (ACC)
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
27 June 2017
Case Number
HCMP962/2017
Procedural Posture
Application for Interim Measures in Aid of CIETAC Arbitration Under Arbitration Ordinance (cap 609) / Interim Application/hearing (return Day)
Outcome
Interim receivers appointed to exercise voting and other rights in the disputed 10.49% block of CSI shares; orders granted in terms of the originating summons with order nisi on one paragraph
Legal Topics
Interim Measures, Receivership, Injunction, Share Pledge/security, Jurisdiction to Grant Interim Relief in Aid of Foreign Arbitration, Enforceability of PRC Law Governed Agreements
Source Language
EN
Arbitration Civil Procedure Company Law Equity Interim Measures Receivership Injunction Share Pledge/security +2 more

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Parties

Chen Hongqing

Plaintiff

Mi Jingtian

1st Defendant

Zhao Liping

2nd Defendant

Li Maohuan

3rd Defendant

Yu Yuchuan

4th Defendant

Asia Cement Corporation (ACC)

Intervener

Procedural Posture

Application for Interim Measures in Aid of CIETAC Arbitration Under Arbitration Ordinance (cap 609) / Interim Application/hearing (return Day)

Legal Issues

  1. 1 Whether the Hong Kong court may grant interim receivership in aid of arbitral proceedings commenced outside Hong Kong under s45 of the Arbitration Ordinance
  2. 2 Whether there is a serious issue to be tried on the validity and enforceability of the Pledge Agreement governed by PRC law
  3. 3 Whether appointment of a receiver is appropriate to preserve the status quo and prevent dissipation of the disputed shares pending arbitration

Ratio Decidendi

The court held that it had power under s45 of the Arbitration Ordinance and ss21L/21M Cap 4 to grant interim measures in aid of an arbitration outside Hong Kong and, on the facts, there was a serious issue to be tried, the shares were in jeopardy, and the balance of convenience favoured appointing receivers to preserve the status quo and facilitate the arbitral process; accordingly interim receivership and related relief were ordered in the terms sought in the originating summons.

Court Disposition

Interim receivers appointed to exercise voting and other rights in the disputed 10.49% block of CSI shares; orders granted in terms of the originating summons with order nisi on one paragraph

Orders

  • Order made in terms of paragraphs 1 to 4 of the Re-amended Originating Summons dated 22 May 2017
  • Order nisi made in terms of paragraph 5 of the Re-amended Originating Summons dated 22 May 2017 with certificate for two counsel