SPECIALTY METALS RESOURCES SA v. HUNAN CHUANGDA VANADIUM TUNGSTEN CO LTD AND ANOTHER

SPECIALTY METALS RESOURCES SA v. HUNAN CHUANGDA VANADIUM TUNGSTEN CO LTD AND ANOTHER

Because the plaintiff complied with Order 13 r.7 and the evidence showed the 2nd defendant received the plaintiff's prepayment, is in financial difficulty and there were grounds to believe assets would be dissipated, the court entered judgment in default for USD392,819.92 against the 2nd defendant and granted a post-judgment injunction under Order 29 r.1 restraining removal or disposal of assets within Hong Kong up to that amount; the court exercised its discretion to discharge the plaintiff from providing a bank guarantee.

Citation
SPECIALTY METALS RESOURCES SA v. HUNAN CHUANGDA VANADIUM TUNGSTEN CO LTD AND ANOTHER
Parties
Plaintiff: Specialty Metals Resources SA; 1st Defendant: Hunan Chuangda Vanadium Tungsten Co., Limited; 2nd Defendant: Majestic Pride International Trading Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
22 March 2016
Case Number
HCA369/2016
Procedural Posture
Civil Action (contract) / Application for Judgment in Default and Post Judgment Injunction (inter Partes Summons)
Outcome
Judgment entered against the 2nd defendant for USD392,819.92; post-judgment injunction granted restraining removal or disposal of assets up to that amount; plaintiff discharged from undertaking to provide a bank guarantee; costs awarded.
Legal Topics
Post Judgment Injunction, Freezing Order, Judgment in Default, Agency, Prepayment Dispute, Service Out of Jurisdiction
Source Language
EN
Civil Commercial Contract Procedural Law Equitable Remedies Post Judgment Injunction Freezing Order Judgment in Default +3 more

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Parties

Specialty Metals Resources SA

Plaintiff

Hunan Chuangda Vanadium Tungsten Co., Limited

1st Defendant

Majestic Pride International Trading Limited

2nd Defendant

Procedural Posture

Civil Action (contract) / Application for Judgment in Default and Post Judgment Injunction (inter Partes Summons)

Legal Issues

  1. 1 Whether judgment in default could be entered against the 2nd defendant under Order 13, r.7
  2. 2 Whether a post-judgment injunction under Order 29, r.1 should be granted to restrain removal/disposal of assets
  3. 3 Whether the plaintiff should be discharged from the undertaking to provide a bank guarantee

Ratio Decidendi

Because the plaintiff complied with Order 13 r.7 and the evidence showed the 2nd defendant received the plaintiff's prepayment, is in financial difficulty and there were grounds to believe assets would be dissipated, the court entered judgment in default for USD392,819.92 against the 2nd defendant and granted a post-judgment injunction under Order 29 r.1 restraining removal or disposal of assets within Hong Kong up to that amount; the court exercised its discretion to discharge the plaintiff from providing a bank guarantee.

Court Disposition

Judgment entered against the 2nd defendant for USD392,819.92; post-judgment injunction granted restraining removal or disposal of assets up to that amount; plaintiff discharged from undertaking to provide a bank guarantee; costs awarded.

Orders

  • Injunction restraining the 2nd defendant from removing from Hong Kong or disposing of assets within Hong Kong up to the value of USD392,819.92, including funds in account no. 10861555 at China Construction Bank (Asia) Corporation Limited
  • If total unencumbered value of the 2nd defendant's assets in Hong Kong exceeds USD392,819.92, the 2nd defendant may remove or deal with assets so long as the total unencumbered value remaining in Hong Kong remains above USD392,819.92