POLSKIE LINIE LOTNICZE LOT SA v. EURO STAR HOLDING CO LTD

POLSKIE LINIE LOTNICZE LOT SA v. EURO STAR HOLDING CO LTD

Although service on the registered office of D2 was valid under s827, on the merits the Court set aside the default judgment against D2 because P's Statement of Claim limited relief against D2 to specific secondary transfers, documentary evidence (bank statements) and the bank's affirmation showed no deposits matching the pleaded secondary transfers, and P conceded an error in the particularised figure; accordingly D2 demonstrated a defence with a real prospect of success; the garnishee order was discharged insofar as it affected D2 and made absolute insofar as it affected D1.

Citation
[2019] HKCFI 2371
Parties
Plaintiff (judgment Creditor): Polskie Linie Lotnicze LOT SA; 1st Defendant (1st Judgment Debtor): Euro Star Holding Co Limited; 2nd Defendant (2nd Judgment Debtor): Sachi Exim Limited; Garnishee: The Hongkong and Shanghai Banking Corporation Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
12 September 2019
Case Number
HCA1063/2019
Procedural Posture
Civil Enforcement Garnishee/default Judgment Set Aside / Chambers Hearing and Decision on Summons and Garnishee Order
Outcome
Default judgment set aside in its entirety as to the 2nd defendant; garnishee order discharged insofar as it affects the 2nd defendant; garnishee order made absolute insofar as it affects the 1st defendant; default judgment against 1st defendant remains valid.
Legal Topics
Default Judgment, Setting Aside, Garnishee Order, Service of Writ, Proprietary Injunction, Fraud/impersonation
Source Language
EN
Civil Procedure Enforcement Company Law Equity Banking Default Judgment Setting Aside Garnishee Order +3 more

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Parties

Polskie Linie Lotnicze LOT SA

Plaintiff (judgment Creditor)

Euro Star Holding Co Limited

1st Defendant (1st Judgment Debtor)

Sachi Exim Limited

2nd Defendant (2nd Judgment Debtor)

The Hongkong and Shanghai Banking Corporation Limited

Garnishee

Procedural Posture

Civil Enforcement Garnishee/default Judgment Set Aside / Chambers Hearing and Decision on Summons and Garnishee Order

Legal Issues

  1. 1 Whether the default judgment entered against the 2nd defendant should be set aside
  2. 2 Whether the garnishee order nisi should be discharged insofar as it affects the 2nd defendant
  3. 3 Whether service on the company's registered office under s827 Companies Ordinance constituted good service

Ratio Decidendi

Although service on the registered office of D2 was valid under s827, on the merits the Court set aside the default judgment against D2 because P's Statement of Claim limited relief against D2 to specific secondary transfers, documentary evidence (bank statements) and the bank's affirmation showed no deposits matching the pleaded secondary transfers, and P conceded an error in the particularised figure; accordingly D2 demonstrated a defence with a real prospect of success; the garnishee order was discharged insofar as it affected D2 and made absolute insofar as it affected D1.

Court Disposition

Default judgment set aside in its entirety as to the 2nd defendant; garnishee order discharged insofar as it affects the 2nd defendant; garnishee order made absolute insofar as it affects the 1st defendant; default judgment against 1st defendant remains valid.

Orders

  • Default judgment dated 26 July 2019 set aside as to Sachi Exim Limited (2nd Defendant)
  • Garnishee Order Nisi dated 5 August 2019 discharged insofar as it affects Sachi Exim Limited (2nd Defendant)