WAH NAM HOLDINGS CO. LTD. AND OTHERS v. EXCEL NOBLE DEVELOPMENT LTD. AND OTHERS

WAH NAM HOLDINGS CO. LTD. AND OTHERS v. EXCEL NOBLE DEVELOPMENT LTD. AND OTHERS

The court released the 1st–7th defendants from the undertakings because the plaintiffs materially nondisclosed their precarious financial position to the ex parte judge, rendering the cross‑undertaking insufficient and warranting discharge without examining the merits; consequential orders for inquiry into damages and costs were made. There was insufficient evidence at this stage to find abuse of process or collusion to justify further findings on that ground.

Citation
WAH NAM HOLDINGS CO. LTD. AND OTHERS v. EXCEL NOBLE DEVELOPMENT LTD. AND OTHERS
Parties
1st Plaintiff: WAH NAM HOLDINGS CO. LIMITED; 2nd Plaintiff: WILLIAM CHAN PAK TO; 3rd Plaintiff: WAH HING SECURITIES LIMITED; 1st Defendant: EXCEL NOBLE DEVELOPMENT LIMITED; 2nd Defendant: EMPIRE HARVEST DEVELOPMENT LIMITED; 3rd Defendant: STAMFORD STAR FINANCE LIMITED; 4th Defendant: UNBEATABLE ASSETS LIMITED; 5th Defendant: SAMSON DAVID CHEN; 6th Defendant: TERENCE HO PUI TIN; 7th Defendant: SOLAR HONEST LIMITED; 8th Defendant: WAH NAM GROUP LIMITED
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
21 July 1999
Case Number
HCA8974/1999
Procedural Posture
Civil Interlocutory Injunction and Proprietary Dispute Over Convertible Loan Notes / Interlocutory Application to Release Undertakings and Related Summons Heard 16 and 19 July 1999
Outcome
1st–7th Defendants released from undertakings given in lieu of interlocutory injunctions; inquiry into damages ordered; order nisi for plaintiffs to pay costs of the ex parte hearing and this summons; leave to apply regarding injunction against 8th Defendant
Legal Topics
Interim Injunctions, Undertaking in Damages, Material Non‑disclosure, Abuse of Process, Beneficial Ownership of Securities, Convertible Loan Notes, Avoidance of Transactions
Source Language
EN
Equity Company Law Commercial Law Civil Procedure Trusts Securities Law Interim Injunctions Undertaking in Damages +5 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 5 Authorities cited 7 Party arguments 2 Amounts and remedies 15
Sign in to unlock

Parties

WAH NAM HOLDINGS CO. LIMITED

1st Plaintiff

WILLIAM CHAN PAK TO

2nd Plaintiff

WAH HING SECURITIES LIMITED

3rd Plaintiff

EXCEL NOBLE DEVELOPMENT LIMITED

1st Defendant

EMPIRE HARVEST DEVELOPMENT LIMITED

2nd Defendant

STAMFORD STAR FINANCE LIMITED

3rd Defendant

UNBEATABLE ASSETS LIMITED

4th Defendant

SAMSON DAVID CHEN

5th Defendant

TERENCE HO PUI TIN

6th Defendant

SOLAR HONEST LIMITED

7th Defendant

WAH NAM GROUP LIMITED

8th Defendant

Procedural Posture

Civil Interlocutory Injunction and Proprietary Dispute Over Convertible Loan Notes / Interlocutory Application to Release Undertakings and Related Summons Heard 16 and 19 July 1999

Legal Issues

  1. 1 Whether the plaintiffs materially nondisclosed their financial position to the ex parte judge when obtaining injunctive relief
  2. 2 Whether the 1st–7th defendants should be released from the undertakings given in lieu of interlocutory injunctions
  3. 3 Whether the plaintiffs' conduct amounted to abuse of process or collusion with the company to allow avoidance of the notes

Ratio Decidendi

The court released the 1st–7th defendants from the undertakings because the plaintiffs materially nondisclosed their precarious financial position to the ex parte judge, rendering the cross‑undertaking insufficient and warranting discharge without examining the merits; consequential orders for inquiry into damages and costs were made. There was insufficient evidence at this stage to find abuse of process or collusion to justify further findings on that ground.

Court Disposition

1st–7th Defendants released from undertakings given in lieu of interlocutory injunctions; inquiry into damages ordered; order nisi for plaintiffs to pay costs of the ex parte hearing and this summons; leave to apply regarding injunction against 8th Defendant

Orders

  • 1st–7th Defendants released from the undertakings given in lieu of interlocutory injunctions recorded in the Order of Pang J dated 1 June 1999 (as amended)
  • Inquiry directed into the damages suffered by the 1st–7th Defendants