LEXCOM INFORMATIONSSYSTEME GMBH v. HONGKONG JOYEE HOLDINGS CO., LTD AND ANOTHER

LEXCOM INFORMATIONSSYSTEME GMBH v. HONGKONG JOYEE HOLDINGS CO., LTD AND ANOTHER

Garnishee order nisi was made absolute because service was proper and there was no opposition; variation of the Mareva injunction to permit payment from the frozen account is granted only subject to the consent of the JFIU or any other regulatory body that instructed the freeze; an order to seize future funds was not granted because it is doubtful that future funds constitute a "debt due or accruing" under Order 49, rule 1 or fall within the plaintiff's proprietary claim.

Citation
[2021] HKCFI 3389
Parties
Plaintiff / Judgment Creditor: LEXCOM INFORMATIONSSYSTEME GMBH; 1st Defendant / Judgment Debtor: HONGKONG JOYEE HOLDINGS CO., LIMITED; 2nd Defendant: THAPA GUNJA, TRADING AS NEW GALAXY ENTERPRISES; Garnishee: HANG SENG BANK LIMITED
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
10 November 2021
Case Number
HCA464/2021
Procedural Posture
Judgment Enforcement; Injunction Variation (mareva) / Chambers Hearing on Interlocutory Applications
Outcome
Garnishee order nisi made absolute; Mareva injunction varied to permit payment of sums up to the judgment sum from D1's account only with consent of the JFIU or any other regulatory body that instructed the freeze; future funds order refused/not granted; no order as to costs.
Legal Topics
Garnishee Order, Mareva Injunction Variation, Service of Process, Regulatory Freeze (jfiu), Future Funds Order, Proprietary Claim
Source Language
EN
Civil Procedure Enforcement Injunctions Banking Law Regulatory Interaction Garnishee Order Mareva Injunction Variation Service of Process +3 more

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Parties

LEXCOM INFORMATIONSSYSTEME GMBH

Plaintiff / Judgment Creditor

HONGKONG JOYEE HOLDINGS CO., LIMITED

1st Defendant / Judgment Debtor

THAPA GUNJA, TRADING AS NEW GALAXY ENTERPRISES

2nd Defendant

HANG SENG BANK LIMITED

Garnishee

Procedural Posture

Judgment Enforcement; Injunction Variation (mareva) / Chambers Hearing on Interlocutory Applications

Legal Issues

  1. 1 Whether the garnishee order nisi should be made absolute
  2. 2 Whether the Mareva injunction should be varied to permit the bank to pay out funds to the plaintiff
  3. 3 Whether payment should be permitted absent consent of the regulatory body (JFIU) that froze the account

Ratio Decidendi

Garnishee order nisi was made absolute because service was proper and there was no opposition; variation of the Mareva injunction to permit payment from the frozen account is granted only subject to the consent of the JFIU or any other regulatory body that instructed the freeze; an order to seize future funds was not granted because it is doubtful that future funds constitute a "debt due or accruing" under Order 49, rule 1 or fall within the plaintiff's proprietary claim.

Court Disposition

Garnishee order nisi made absolute; Mareva injunction varied to permit payment of sums up to the judgment sum from D1's account only with consent of the JFIU or any other regulatory body that instructed the freeze; future funds order refused/not granted; no order as to costs.

Orders

  • Garnishee order nisi made absolute against 1st Defendant.
  • The Mareva injunction is varied to permit Hang Seng Bank to release and pay to the plaintiff all sums up to the judgment sum of 1,183,210.64 from D1's account only subject to the consent of the JFIU and/or any other regulatory body who had instructed the Bank to freeze D1's bank account.