HANG SENG BANK LTD v. PANYU CHEMICALS IMPORT & EXPORT CORPORATION AND ANOTHER

HANG SENG BANK LTD v. PANYU CHEMICALS IMPORT & EXPORT CORPORATION AND ANOTHER

Section 21(1) of the High Court Ordinance deems deposit account sums to be due or accruing due and therefore attachable; the Garnishee's earlier legal position was incorrect and, having conceded, the court made the 2nd garnishee order absolute and ordered the Garnishee to pay the costs of that application to the Judgment Creditor; the Garnishee may not deduct its costs from the attached monies.

Citation
HANG SENG BANK LTD v. PANYU CHEMICALS IMPORT & EXPORT CORPORATION AND ANOTHER
Parties
Plaintiff (garnishee): Hang Seng Bank Limited; 1st Defendant (judgment Creditor): Panyu Chemicals Import & Export Corporation; 2nd Defendant (judgment Debtor): Chen Fang Xiao
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
25 September 2007
Case Number
HCMP2800/2002
Procedural Posture
Garnishee Proceedings and Originating Summons (hcmp2800 of 2002; Related to HCA1537 of 2001) / Ruling on 2nd Garnishee Application and Determination of Originating Summons
Outcome
Court answered the Originating Summons questions in the affirmative, made the 2nd Garnishee Order absolute and awarded costs of the 2nd Garnishee application against the Garnishee; Originating Summons costs ordered as agreed (no order).
Legal Topics
Garnishee Order, Attachment of Bank Deposits, Section 21(1) High Court Ordinance, Costs
Source Language
EN
Civil Procedure Enforcement of Judgments Banking Law Garnishee Order Attachment of Bank Deposits Section 21(1) High Court Ordinance Costs

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Parties

Hang Seng Bank Limited

Plaintiff (garnishee)

Panyu Chemicals Import & Export Corporation

1st Defendant (judgment Creditor)

Chen Fang Xiao

2nd Defendant (judgment Debtor)

Procedural Posture

Garnishee Proceedings and Originating Summons (hcmp2800 of 2002; Related to HCA1537 of 2001) / Ruling on 2nd Garnishee Application and Determination of Originating Summons

Legal Issues

  1. 1 Whether time deposit accounts are attachable under the 1st Garnishee Absolute
  2. 2 Whether the 2nd Garnishee Order should be made absolute
  3. 3 Whether the Garnishee should pay costs for the 2nd Garnishee application and whether those costs can be deducted from attached monies

Ratio Decidendi

Section 21(1) of the High Court Ordinance deems deposit account sums to be due or accruing due and therefore attachable; the Garnishee's earlier legal position was incorrect and, having conceded, the court made the 2nd garnishee order absolute and ordered the Garnishee to pay the costs of that application to the Judgment Creditor; the Garnishee may not deduct its costs from the attached monies.

Court Disposition

Court answered the Originating Summons questions in the affirmative, made the 2nd Garnishee Order absolute and awarded costs of the 2nd Garnishee application against the Garnishee; Originating Summons costs ordered as agreed (no order).

Orders

  • Order that the time deposit accounts are attachable pursuant to section 21(1) High Court Ordinance (Originating Summons determined)
  • Make the 2nd Garnishee Order absolute