YEE SANG METAL AND BUILDING SUPPLIES CO. LTD. v. SHANGHAI JIN JIANG SHIPPING CORPORATION LTD.

YEE SANG METAL AND BUILDING SUPPLIES CO. LTD. v. SHANGHAI JIN JIANG SHIPPING CORPORATION LTD.

The Court has jurisdiction under s14(6)(a) of the Arbitration Ordinance read with Order 23 r.2 to order security for costs and to include an ancillary stay of the arbitration pending provision of that security; such a stay is a necessary and appropriate term to give effect to the security order and does not impair the arbitrator's authority.

Citation
YEE SANG METAL AND BUILDING SUPPLIES CO. LTD. v. SHANGHAI JIN JIANG SHIPPING CORPORATION LTD.
Parties
Plaintiff (respondents in Arbitration): Yee Sang Metal and Building Supplies Co. Ltd; Defendant (claimants in Arbitration): Shanghai Jin Jiang Shipping Corporation Ltd.
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
30 January 1991
Case Number
HCMP4010/1990
Procedural Posture
Originating Summons (arbitration) / Judgment (in Chambers)
Outcome
Order for security for costs granted and arbitration stayed pending compliance
Legal Topics
Security for Costs, Stay of Arbitration, Jurisdiction of Court
Source Language
EN
Arbitration Civil Procedure Costs Security for Costs Stay of Arbitration Jurisdiction of Court

Case Brief

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Parties

Yee Sang Metal and Building Supplies Co. Ltd

Plaintiff (respondents in Arbitration)

Shanghai Jin Jiang Shipping Corporation Ltd.

Defendant (claimants in Arbitration)

Procedural Posture

Originating Summons (arbitration) / Judgment (in Chambers)

Legal Issues

  1. 1 Whether the Court has power to stay arbitration proceedings pending compliance with an order for security for costs under Section 14(6)(a) of the Arbitration Ordinance Cap.341
  2. 2 Whether Order 23 Rule 2 of the Rules of the Supreme Court empowers terms including stays in orders for security for costs
  3. 3 Whether a stay ancillary to a security order affects the arbitrator's authority

Ratio Decidendi

The Court has jurisdiction under s14(6)(a) of the Arbitration Ordinance read with Order 23 r.2 to order security for costs and to include an ancillary stay of the arbitration pending provision of that security; such a stay is a necessary and appropriate term to give effect to the security order and does not impair the arbitrator's authority.

Court Disposition

Order for security for costs granted and arbitration stayed pending compliance

Orders

  • Defendants to provide security for plaintiffs' costs of the arbitration in the sum of $222,000.00 by 4.30 p.m. on 19 February 1991 in a form acceptable to the plaintiffs or to the Court
  • All further proceedings in the arbitration are stayed pending compliance with this order