READY SUCCESS GROUP LTD v. HT STEEL (WORLD) INTERNATIONAL TRADE HOLDING CO., LTD

READY SUCCESS GROUP LTD v. HT STEEL (WORLD) INTERNATIONAL TRADE HOLDING CO., LTD

Because the cumulative effect of timing discrepancies, lack of objective contemporaneous evidence of loan terms, evolving and inconsistent affirmations, and doubts about the authenticity and effect of the Debt Settlement Agreements raised reasonable suspicion as to the bona fides of the judgment debts, the court refused to make the garnishee orders nisi absolute or to vary the Mareva injunctions and ordered a full inter partes inquiry and trial process to determine the matters.

Citation
[2025] HKCFI 1747
Parties
Plaintiff (hcmp 1472/1931): 南京涵恩物資有限公司; 1st Defendant (hcmp 1472/1931): 吳惠娣 (WU HUI DI); 2nd Defendant (hcmp 1472/1931): 吳立 (WU LI); Plaintiff / Judgment Creditor (hca 1014/1601): FENGLI GROUP (HONGKONG) CO., LIMITED; Defendant / Judgment Debtor (hca 1014/1601; HCA 1601/2021): HT STEEL (WORLD) INTERNATIONAL TRADE HOLDING CO., LIMITED; Plaintiff / Judgment Creditor (hca 1601/2021): READY SUCCESS GROUP LIMITED; Garnishee: BANK OF CHINA (HONG KONG) LIMITED
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
28 April 2025
Case Number
HCA1601/2021
Procedural Posture
Garnishee and Variation Proceedings Related to Enforcement of Default Judgments and Mareva Injunctions / Interlocutory Hearing on Applications for Garnishee Orders Absolute and Variation of Mareva Injunctions; Directions and Further Trial Ordered
Outcome
Garnishee orders nisi refused to be made absolute; variation of Mareva injunctions refused; interlocutory directions given for contested determination of bona fides and trial.
Legal Topics
Garnishee Order, Mareva Injunction, Bona Fides of Judgment Debt, Registration of Mainland Judgment, Variation of Injunction, Inter Company Transfers, Default Judgment
Source Language
EN
Civil Enforcement Cross Border Enforcement Injunctions Company Restructuring Civil Procedure Garnishee Order Mareva Injunction Bona Fides of Judgment Debt +4 more

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Parties

南京涵恩物資有限公司

Plaintiff (hcmp 1472/1931)

吳惠娣 (WU HUI DI)

1st Defendant (hcmp 1472/1931)

吳立 (WU LI)

2nd Defendant (hcmp 1472/1931)

FENGLI GROUP (HONGKONG) CO., LIMITED

Plaintiff / Judgment Creditor (hca 1014/1601)

HT STEEL (WORLD) INTERNATIONAL TRADE HOLDING CO., LIMITED

Defendant / Judgment Debtor (hca 1014/1601; HCA 1601/2021)

READY SUCCESS GROUP LIMITED

Plaintiff / Judgment Creditor (hca 1601/2021)

BANK OF CHINA (HONG KONG) LIMITED

Garnishee

Procedural Posture

Garnishee and Variation Proceedings Related to Enforcement of Default Judgments and Mareva Injunctions / Interlocutory Hearing on Applications for Garnishee Orders Absolute and Variation of Mareva Injunctions; Directions and Further Trial Ordered

Legal Issues

  1. 1 Which party bears the burden to prove the bona fides of judgment debts?
  2. 2 Whether circumstances give rise to sufficient suspicion to require investigation into the bona fides of the judgment debts
  3. 3 Whether to exercise discretion to make garnishee orders absolute and vary Mareva injunctions

Ratio Decidendi

Because the cumulative effect of timing discrepancies, lack of objective contemporaneous evidence of loan terms, evolving and inconsistent affirmations, and doubts about the authenticity and effect of the Debt Settlement Agreements raised reasonable suspicion as to the bona fides of the judgment debts, the court refused to make the garnishee orders nisi absolute or to vary the Mareva injunctions and ordered a full inter partes inquiry and trial process to determine the matters.

Court Disposition

Garnishee orders nisi refused to be made absolute; variation of Mareva injunctions refused; interlocutory directions given for contested determination of bona fides and trial.

Orders

  • Nanjing Hanen to be joined as intervener to the garnishee proceedings in HCA 1014/2021 and HCA 1601/2021
  • The Judgment Creditors to be joined as interveners to HCMP 1472/2020 and HCMP 1931/2020 for the purpose of the Variation Summonses