CONNECT PLUS LTD v. LAU WING YAN AND OTHERS

CONNECT PLUS LTD v. LAU WING YAN AND OTHERS

The defendants failed to justify staying the ancillary disclosure orders pending resolution of the discharge summonses because they did not prove beneficial ownership or freedom from encumbrance of the Bel-Air property, delayed adducing straightforward evidence, and there remained a substantial shortfall versus the Mareva sums; accordingly the stay application was dismissed and the disclosure orders continued with limited variations.

Citation
[2021] HKCFI 181
Parties
1st Plaintiff (hca 227/2017): Canton Plus Enterprise Limited; 2nd Plaintiff (hca 227/2017): Anais Development Sa; 1st Defendant (hca 227/2017): Tong Zhenjun; 2nd Defendant (hca 227/2017): Liang Pan; 3rd Defendant (hca 227/2017); 1st Defendant (hca 1026/2020); 1st Defendant (hca 2132/2020): Lau Wing Yan; 4th Defendant (hca 227/2017): Prosperous Elite Ventures Limited; 5th Defendant (hca 227/2017): Pacific Bulk Cape Company Limited; 6th Defendant (hca 227/2017): Pacific Bulk Enterprises Company Limited; 7th Defendant (hca 227/2017): Pacific Bulk Panamax Company Limited; 8th Defendant (hca 227/2017): Pacific Bulk Supramax Company Limited; 9th Defendant (hca 227/2017): Profit Far Limited; 10th Defendant (hca 227/2017): Pacific Bulk Shipping Limited; 1st Plaintiff (hca 1026/2020); 1st Defendant (counterclaim in HCA 227/2017): Chu Kong; 2nd Plaintiff (hca 1026/2020): Trenus Oceanway Ltd; 3rd Defendant (hca 1026/2020): Richland International Limited; 4th Defendant (hca 1026/2020): Smartplace Limited; 5th Defendant (hca 1026/2020): Pacific Bulk Shipping (Cayman) Limited; 2nd Defendant (hca 1026/2020): Chang Dafa; 10th Defendant (hca 1026/2020): Ecosuccess Limited; Plaintiff (hca 2132/2020): Connect Plus Limited; 2nd Defendant (hca 2132/2020): Yang Haitao; 3rd Defendant (hca 2132/2020): Wat Fung Ying; 4th Defendant (hca 2132/2020): Yan Donghai; 5th Defendant (hca 2132/2020): Go Prosper International Limited; 6th Defendant (hca 2132/2020): Pacific Bulk Lines Company Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
15 January 2021
Case Number
HCA2132/2020
Procedural Posture
Interlocutory Applications for Mareva and Proprietary Injunctions; Ancillary Disclosure Orders / Return Day for Ex Parte Injunctions; Stay Application Heard; Discharge Summonses Adjourned for Substantive Argument
Outcome
Stay application dismissed; interlocutory injunctions to continue; disclosure orders varied and to remain in force pending disposal of discharge summonses
Legal Topics
Mareva Injunction, Proprietary Injunction, Ancillary Disclosure Order, Derivative Action, Material Non Disclosure, Stay Application, Costs
Source Language
EN
Civil Procedure Equity Injunctions Company Law Mareva Injunction Proprietary Injunction Ancillary Disclosure Order Derivative Action +3 more

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Parties

Canton Plus Enterprise Limited

1st Plaintiff (hca 227/2017)

Anais Development Sa

2nd Plaintiff (hca 227/2017)

Tong Zhenjun

1st Defendant (hca 227/2017)

Liang Pan

2nd Defendant (hca 227/2017)

Lau Wing Yan

3rd Defendant (hca 227/2017); 1st Defendant (hca 1026/2020); 1st Defendant (hca 2132/2020)

Prosperous Elite Ventures Limited

4th Defendant (hca 227/2017)

Pacific Bulk Cape Company Limited

5th Defendant (hca 227/2017)

Pacific Bulk Enterprises Company Limited

6th Defendant (hca 227/2017)

Pacific Bulk Panamax Company Limited

7th Defendant (hca 227/2017)

Pacific Bulk Supramax Company Limited

8th Defendant (hca 227/2017)

Profit Far Limited

9th Defendant (hca 227/2017)

Pacific Bulk Shipping Limited

10th Defendant (hca 227/2017)

Chu Kong

1st Plaintiff (hca 1026/2020); 1st Defendant (counterclaim in HCA 227/2017)

Trenus Oceanway Ltd

2nd Plaintiff (hca 1026/2020)

Richland International Limited

3rd Defendant (hca 1026/2020)

Smartplace Limited

4th Defendant (hca 1026/2020)

Pacific Bulk Shipping (Cayman) Limited

5th Defendant (hca 1026/2020)

Chang Dafa

2nd Defendant (hca 1026/2020)

Ecosuccess Limited

10th Defendant (hca 1026/2020)

Connect Plus Limited

Plaintiff (hca 2132/2020)

Yang Haitao

2nd Defendant (hca 2132/2020)

Wat Fung Ying

3rd Defendant (hca 2132/2020)

Yan Donghai

4th Defendant (hca 2132/2020)

Go Prosper International Limited

5th Defendant (hca 2132/2020)

Pacific Bulk Lines Company Limited

6th Defendant (hca 2132/2020)

Procedural Posture

Interlocutory Applications for Mareva and Proprietary Injunctions; Ancillary Disclosure Orders / Return Day for Ex Parte Injunctions; Stay Application Heard; Discharge Summonses Adjourned for Substantive Argument

Legal Issues

  1. 1 Whether ancillary disclosure orders should be stayed pending resolution of discharge summonses
  2. 2 Whether defendants have established beneficial ownership of Hong Kong properties relied on to justify staying disclosure
  3. 3 Whether the intrusion of disclosure unjustifiably outweighs prejudice to plaintiffs

Ratio Decidendi

The defendants failed to justify staying the ancillary disclosure orders pending resolution of the discharge summonses because they did not prove beneficial ownership or freedom from encumbrance of the Bel-Air property, delayed adducing straightforward evidence, and there remained a substantial shortfall versus the Mareva sums; accordingly the stay application was dismissed and the disclosure orders continued with limited variations.

Court Disposition

Stay application dismissed; interlocutory injunctions to continue; disclosure orders varied and to remain in force pending disposal of discharge summonses

Orders

  • Stay application dismissed
  • Injunctions granted by Deputy High Court Judge To on 5 January 2021 to continue until disposal of the discharge summonses or further order