CHINA NONFERROUS METALS (HONG KONG) FINANCE CO LTD (In Liquidation) AND ANOTHER v. SOUTH-EAST ASIA INVESTMENT HOLDING CO LTD AND ANOTHER

CHINA NONFERROUS METALS (HONG KONG) FINANCE CO LTD (In Liquidation) AND ANOTHER v. SOUTH-EAST ASIA INVESTMENT HOLDING CO LTD AND ANOTHER

Although there was inordinate and inexcusable delay by the liquidators amounting to abuse of process, the court found no real risk that a fair trial is impossible and the defendants had not demonstrated sufficient prejudice to justify striking out; accordingly the striking out application was dismissed, the summary judgment application was dismissed for failure to prosecute, and directions and additional security for costs were ordered to ensure expeditious conduct.

Citation
CHINA NONFERROUS METALS (HONG KONG) FINANCE CO LTD (In Liquidation) AND ANOTHER v. SOUTH-EAST ASIA INVESTMENT HOLDING CO LTD AND ANOTHER
Parties
1st Plaintiff: CHINA NONFERROUS METALS (HONG KONG) FINANCE COMPANY LIMITED (In Liquidation); 2nd Plaintiff: CHINA NONFERROUS METALS GROUP (HONG KONG) LIMITED (In Liquidation); 1st Defendant: SOUTH-EAST ASIA INVESTMENT HOLDING COMPANY LIMITED; 2nd Defendant: NG HON LEUNG
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
31 July 2012
Case Number
HCCL20/2002
Procedural Posture
Commercial Action No 20 of 2002 / Application to Strike Out for Want of Prosecution (decision)
Outcome
application to strike out dismissed; summary judgment application dismissed
Legal Topics
Strike Out for Want of Prosecution, Abuse of Process, Summary Judgment, Security for Costs, Liquidation, Delay
Source Language
EN
Civil Litigation Company Law Commercial Law Procedural Law Strike Out for Want of Prosecution Abuse of Process Summary Judgment Security for Costs +2 more

Case Brief

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Parties

CHINA NONFERROUS METALS (HONG KONG) FINANCE COMPANY LIMITED (In Liquidation)

1st Plaintiff

CHINA NONFERROUS METALS GROUP (HONG KONG) LIMITED (In Liquidation)

2nd Plaintiff

SOUTH-EAST ASIA INVESTMENT HOLDING COMPANY LIMITED

1st Defendant

NG HON LEUNG

2nd Defendant

Procedural Posture

Commercial Action No 20 of 2002 / Application to Strike Out for Want of Prosecution (decision)

Legal Issues

  1. 1 Whether the 2001 Action should be struck out for want of prosecution due to inordinate delay and abuse of process
  2. 2 Whether the delay caused prejudice making a fair trial impossible
  3. 3 Whether summary judgment application should be allowed given delay and conduct

Ratio Decidendi

Although there was inordinate and inexcusable delay by the liquidators amounting to abuse of process, the court found no real risk that a fair trial is impossible and the defendants had not demonstrated sufficient prejudice to justify striking out; accordingly the striking out application was dismissed, the summary judgment application was dismissed for failure to prosecute, and directions and additional security for costs were ordered to ensure expeditious conduct.

Court Disposition

application to strike out dismissed; summary judgment application dismissed

Orders

  • Order dismissing summary judgment application with costs to the Company and the Director
  • Parties to submit agreed directions within 7 days of decision for filing Defence, discovery and exchange of witness statements and further conduct