14 Jun 2024
AD HOC COMMITTEE (comprising CMB Wing Lung Bank Ltd and The Export- Import Bank of China) v. CHINA LIFE TRUSTEES LIMITED
- Citation
- [2024] HKCFA 15
- Court
- Court of Final Appeal
- Case number
- FACV9/2023
On the objective evidence the US$120 million was paid into SPV1's US$ sub-account solely for the specific purpose of meeting SPV2's 2018 bond obligations and not to be at SPV1's free disposal; a Quistclose trust therefore arose in favour of the payer (Trading/Group) and, upon failure of the purpose, the funds are held on resulting/express trust for the payer. No express reservation of beneficial interest was required and intra-group common control does not preclude such a finding. The garnishee order was therefore discharged.