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

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

Although plaintiffs acted in good faith, the injunction was nugatory because D3 did not own the shares at the time it was granted, there was no change of circumstances, and the plaintiffs failed to establish merits sufficient to sustain the injunction; an innocent successful defendant (D3) should recover costs of the injunction application, which are to be summarily assessed with specified filing dates.

Citation
KOREA EXCHANGE BANK, HONG KONG BRANCH AND ANOTHER v. SSCP HOLDINGS (HONG KONG) LTD AND OTHERS
Parties
1st Plaintiff: Korea 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
26 June 2013
Case Number
HCA146/2013
Procedural Posture
Civil Action With Interlocutory Application for Injunction (action No 146 of 2013, Cfi) / Decision on Costs After Discharge of Ex Parte Interim Injunction
Outcome
Costs awarded to 3rd defendant (Stanley & Associates Limited)
Legal Topics
Interlocutory Injunction, Costs, Void Disposition to Defraud Creditors (s60 Conveyancing and Property Ordinance), Setting Aside Transfer of Shares, Inspection of Register of Members
Source Language
EN
Civil Procedure Equity Property Law Company Law Interlocutory Injunction Costs Void Disposition to Defraud Creditors (s60 Conveyancing and Property Ordinance) Setting Aside Transfer of Shares +1 more

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Parties

Korea 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

Civil Action With Interlocutory Application for Injunction (action No 146 of 2013, Cfi) / Decision on Costs After Discharge of Ex Parte Interim Injunction

Legal Issues

  1. 1 Whether costs of the interlocutory injunction should be in the cause or awarded to the 3rd defendant
  2. 2 Whether the plaintiffs acted reasonably in obtaining the ex parte injunction given the facts available at the time
  3. 3 Whether there was a change of circumstances justifying discharge other than lack of merits

Ratio Decidendi

Although plaintiffs acted in good faith, the injunction was nugatory because D3 did not own the shares at the time it was granted, there was no change of circumstances, and the plaintiffs failed to establish merits sufficient to sustain the injunction; an innocent successful defendant (D3) should recover costs of the injunction application, which are to be summarily assessed with specified filing dates.

Court Disposition

Costs awarded to 3rd defendant (Stanley & Associates Limited)

Orders

  • Injunction discharged by agreement of the plaintiffs
  • Costs of the injunction application including this hearing to be to the 3rd defendant (Stanley & Associates Limited)