SPEED SOURCING LTD AND OTHERS v. RAINBOW STATE INVESTMENTS LTD AND OTHERS

SPEED SOURCING LTD AND OTHERS v. RAINBOW STATE INVESTMENTS LTD AND OTHERS

The uncontested documentary evidence (the SPA, transfer documents and the cheque showing HK$1,750,000) directly contradicted the plaintiffs' pleaded allegation of no consideration; the plaintiffs failed to dispute authenticity or explain why the consideration was not real; therefore their cause of action against the 2nd and 3rd defendants was bound to fail and no serious issue to be tried existed to justify injunctions, so the claims against the 2nd and 3rd defendants were struck out and the relevant injunctions dismissed.

Citation
SPEED SOURCING LTD AND OTHERS v. RAINBOW STATE INVESTMENTS LTD AND OTHERS
Parties
1st Plaintiff: Speed Sourcing Limited; 2nd Plaintiff: Sun Wood Company Limited; 3rd Plaintiff: Shirley Mae Wong; 1st Defendant: Rainbow State Investments Limited; 2nd Defendant: Colonial Charm Investment Limited; 3rd Defendant: Nice Gain (HK) Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
5 June 2014
Case Number
HCA2298/2013
Procedural Posture
Civil: Injunction Application and Striking Out Application (court of First Instance) / Chambers Decision on Adjourned Summonses (striking Out and Injunctions)
Outcome
Amended writ and statement of claim struck out as against the 2nd and 3rd defendants; application for injunctions in respect of the Nice Gain shares and the Workshops dismissed; costs awarded as ordered.
Legal Topics
Resulting Trust, Consideration, Strike Out for Being Bound to Fail, Interim Injunctions, Lis Pendens, Transfer of Shares, Costs
Source Language
EN
Equity Trusts Company Law Property Law Civil Procedure Injunctions Resulting Trust Consideration +5 more

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Parties

Speed Sourcing Limited

1st Plaintiff

Sun Wood Company Limited

2nd Plaintiff

Shirley Mae Wong

3rd Plaintiff

Rainbow State Investments Limited

1st Defendant

Colonial Charm Investment Limited

2nd Defendant

Nice Gain (HK) Limited

3rd Defendant

Procedural Posture

Civil: Injunction Application and Striking Out Application (court of First Instance) / Chambers Decision on Adjourned Summonses (striking Out and Injunctions)

Legal Issues

  1. 1 Whether Colonial Charm holds the Nice Gain shares on resulting trust for Shirley Wong
  2. 2 Whether an interlocutory injunction should restrain Colonial Charm from transferring the Nice Gain shares
  3. 3 Whether an interlocutory injunction should restrain Nice Gain from dealing with the Workshops

Ratio Decidendi

The uncontested documentary evidence (the SPA, transfer documents and the cheque showing HK$1,750,000) directly contradicted the plaintiffs' pleaded allegation of no consideration; the plaintiffs failed to dispute authenticity or explain why the consideration was not real; therefore their cause of action against the 2nd and 3rd defendants was bound to fail and no serious issue to be tried existed to justify injunctions, so the claims against the 2nd and 3rd defendants were struck out and the relevant injunctions dismissed.

Court Disposition

Amended writ and statement of claim struck out as against the 2nd and 3rd defendants; application for injunctions in respect of the Nice Gain shares and the Workshops dismissed; costs awarded as ordered.

Orders

  • Amended Writ issued on 4 December 2013 and Statement of Claim filed on 3 January 2014 struck out as against the 2nd and 3rd defendants
  • Application under paragraph 3 of the Injunctions Summons dismissed