KOREAN EXCHANGE BANK, HONG KONG BRANCH AND ANOTHER v. SSCP HOLDINGS (HONG KONG) LTD AND OTHERS

KOREAN EXCHANGE BANK, HONG KONG BRANCH AND ANOTHER v. SSCP HOLDINGS (HONG KONG) LTD AND OTHERS

Paragraph 4 of the Reply alleging the Agreement was illegal was unarguable and liable to be struck out because the pleaded statutory breaches did not establish a sufficient nexus to render the Agreement illegal or vitiate civil enforceability, and the pleaded allegations of statutory breaches were remote and...

Source-derived case information.

Citation
KOREAN EXCHANGE BANK, HONG KONG BRANCH AND ANOTHER v. SSCP HOLDINGS (HONG KONG) LTD AND OTHERS
Parties
1st Plaintiff: Korean Exchange Bank, Hong Kong Branch; 2nd Plaintiff: WOORI BANK, HONG KONG BRANCH; 1st Defendant: SSCP HOLDINGS (HONG KONG) LIMITED; 2nd Defendant: SSCP COMPANY LIMITED; 3rd Defendant: STANLEY & ASSOCIATES LIMITED; 4th Defendant: SAMSUNG CHEMICAL (HONG KONG) COMPANY LIMITED; 5th Defendant: M&C HOLDINGS (HONG KONG) LIMITED
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
27 October 2014
Case Number
HCA146/2013
Procedural Posture
High Court Action to Set Aside Transfers and Ancillary Relief (fraudulent Disposition/charging Order Enforcement) / Interlocutory Strike‑out Summons Hearing and Decision (application to Strike Out Paragraph of Reply)
Outcome
Impugned plea (paragraph 4 of the Reply) struck out; related interrogatories withdrawn; costs ordered against P2 on a nisi basis
Legal Topics
Fraudulent Transfer (s60 Conveyancing and Property Ordinance), Illegality of Contract, Striking Out Pleadings, Pleading Particulars and Interrogatories, Charging Order, Mareva Injunction
Source Language
en
Civil Procedure Company Law Insolvency and Fraudulent Disposition Securities Regulation Commercial Law Fraudulent Transfer (s60 Conveyancing and Property Ordinance) Illegality of Contract Striking Out Pleadings +3 more

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Parties

Korean Exchange Bank, Hong Kong Branch

1st Plaintiff

WOORI BANK, HONG KONG BRANCH

2nd Plaintiff

SSCP HOLDINGS (HONG KONG) LIMITED

1st Defendant

SSCP COMPANY LIMITED

2nd Defendant

STANLEY & ASSOCIATES LIMITED

3rd Defendant

SAMSUNG CHEMICAL (HONG KONG) COMPANY LIMITED

4th Defendant

M&C HOLDINGS (HONG KONG) LIMITED

5th Defendant

Procedural Posture

High Court Action to Set Aside Transfers and Ancillary Relief (fraudulent Disposition/charging Order Enforcement) / Interlocutory Strike‑out Summons Hearing and Decision (application to Strike Out Paragraph of Reply)

Legal Issues

  1. 1 Whether paragraph 4 of the Reply alleging the Agreement was illegal and void/unenforceable is unarguable and should be struck out
  2. 2 Whether breaches of the Securities and Futures Ordinance, Companies Ordinance and Business Registration Ordinance render the Agreement illegal or otherwise affect civil enforceability
  3. 3 Whether allegations of statutory breaches by D3 are material or merely evidential propensity material admissible without being pleaded as a cause of action

Ratio Decidendi

Paragraph 4 of the Reply alleging the Agreement was illegal was unarguable and liable to be struck out because the pleaded statutory breaches did not establish a sufficient nexus to render the Agreement illegal or vitiate civil enforceability, and the pleaded allegations of statutory breaches were remote and improperly pleaded as material facts rather than evidence of propensity; accordingly the impugned plea and related interrogatories were struck out and withdrawn.

Court Disposition

Impugned plea (paragraph 4 of the Reply) struck out; related interrogatories withdrawn; costs ordered against P2 on a nisi basis

Orders

  • The whole of paragraph 4 of the Reply is struck out
  • Within 14 days P2 shall file and serve an Amended Reply with paragraph 4 crossed out in red