ULTRA SOURCE TRADING HONG KONG LTD v. HIGHSHARP TRADING LTD AND ANOTHER

ULTRA SOURCE TRADING HONG KONG LTD v. HIGHSHARP TRADING LTD AND ANOTHER

On the pleaded facts, taken as admitted in default, the Settlement Agreement was breached and established D1 and D2's joint and several liability and indemnity obligations; the declaratory reliefs sought were confined to what was necessary to give effect to the settlement and to provide certainty; accordingly judgment in default for the plaintiff and the declarations and costs as assessed were granted.

Citation
[2025] HKCFI 4790
Parties
Plaintiff: P (Plaintiff); Defendant: 1st Defendant; Defendant: 2nd Defendant
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
17 September 2025
Case Number
HCA1177/2025
Procedural Posture
Debt Claim / Enforcement of Settlement Agreement / Hearing of Summons for Default Judgment Under O.19 R.7 of the Rules of the High Court
Outcome
Default judgment for the Plaintiff against the 1st and 2nd Defendants; declarations granted; costs awarded on an indemnity basis.
Legal Topics
Default Judgment, Declaratory Relief, Settlement Agreement Enforcement, Guarantee and Indemnity, Service of Process, Costs Assessment
Source Language
EN
Company Law Contract Civil Procedure Insolvency Debt Recovery Default Judgment Declaratory Relief Settlement Agreement Enforcement +3 more

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Parties

P (Plaintiff)

Plaintiff

1st Defendant

Defendant

2nd Defendant

Defendant

Procedural Posture

Debt Claim / Enforcement of Settlement Agreement / Hearing of Summons for Default Judgment Under O.19 R.7 of the Rules of the High Court

Legal Issues

  1. 1 Whether plaintiff is entitled to default judgment under O.19 r.7 on the pleaded facts
  2. 2 Whether declaratory relief sought is properly made out and appropriate to grant in default
  3. 3 Whether D1 and D2 are jointly and severally liable and obliged to indemnify P under the Settlement Agreement

Ratio Decidendi

On the pleaded facts, taken as admitted in default, the Settlement Agreement was breached and established D1 and D2's joint and several liability and indemnity obligations; the declaratory reliefs sought were confined to what was necessary to give effect to the settlement and to provide certainty; accordingly judgment in default for the plaintiff and the declarations and costs as assessed were granted.

Court Disposition

Default judgment for the Plaintiff against the 1st and 2nd Defendants; declarations granted; costs awarded on an indemnity basis.

Orders

  • Judgment entered against the 1st and 2nd Defendants, jointly and severally, for USD 16,082,695.44 as at the date of the Statement of Claim.
  • Declarations granted that (a) the Plaintiff was entitled to set-off, waiver and/or release of the accounts payable (AP) on 25 March 2025 and that set-off/waiver/release was effected; (b) the 1st Defendant has waived all claims against the Plaintiff arising out of or related to the AP and the Inventory and the...