Hong Kong—anti-suit injunction granted in respect of Chinese litigation proceedings (Capital Wealth Holdings Ltd (資富控股有限公司) v 南通嘉禾科技投资?发有限公司)

Table of contents

• What are the practical implications of this case?
• What was the background?
• What did the court decide?
• The JV agreement
• The loan agreement and share pledge
• Case details

Article summary

Arbitration analysis: This judgment provides an illustration of how the Hong Kong court will exercise its power under section 45 of the Arbitration Ordinance (Cap 609) (AO) to grant interim anti-suit injunctions. Anti-suit injunctions were granted by the Hong Kong Court of First Instance in respect of two sets of proceedings in Mainland China. One set of proceedings was brought in breach of a written arbitration agreement. The other set of proceedings was brought in respect of related contracts without clear written arbitration agreements. However, the Hong Kong court held that the applicants had shown a strong probability that the parties’ intention was that the disputes should be resolved under the same arbitration agreement. Written by Andrew Rigden Green, partner, head of International Arbitration Greater China, at Stephenson Harwood.