OCBC BANK (HONG KONG) LTD (formerly known as OCBC WING HANG BANK LTD) v. ALONG INDUSTRIAL CO., LTD AND ANOTHER

HCA 696/2021 and
HCA 1032/2021
(Consolidated)

[2025] HKCFI 5978

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF FIRST INSTANCE

ACTION NO 696 OF 2021 AND ACTION NO 1032 OF 2021

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(By Original Action)

(By Counterclaim)

(Consolidated by the Order of Master Phoebe Man dated 4 April 2022)

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D E C I S I O N

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1.  By Summons dated 31 October 2025 (“Summons”), the Plaintiff by Counterclaim (“P”) seeks to enter judgment against Along Industrial Co. Limited, the 2^nd Defendant by Counterclaim (“Along”) for a declaration that the Purported Invoices and/or Purported Repayment Plan are void and/or unenforceable against P. Alternatively, P seeks leave to discontinue its Counterclaim against Along.

2.  As I was satisfied that Along has been served the Summons and Notice of Intention to Enter Judgment, and D2 has not participated further in these proceedings since 4 October 2023, I took the view that in these circumstances, it was expedient to proceed in the absence of Along today.

3.  Given that Along’s Defence to Counterclaim dated 9 February 2023 without any Statement of Truth was struck out pursuant to the Order of Master Maurice Lam dated 17 October 2024 (“Master’s Order”) when Along failed to file and serve any Statement of Truth within the time stipulated in Master’s Order, P is entitled to seek judgment against Along under O.19, r.7 of the Rules of the High Court, Cap. 4A: see Hong Kong Civil Procedure 2026, Vol.1, §19/7/3.

4.  As for seeking a declaration without a trial, it is a rule of practice that declarations should not be granted without a trial but this should not be followed when the plaintiff has a genuine need for the declaratory relief and justice would not be done if relief were denied: see ibid, §19/7/20.

5.  Judgment has been entered against Along in favour of OCBC (the Plaintiff in the main action) for the full reliefs sought by OCBC. P (who was sued as the 2^nd Defendant in the main action) has settled with OCBC by a Tomlin Order dated 28 May 2024. If OCBC will not and cannot (according to the terms of the Tomlin Order), pursue P pursuant to the Purported Invoices and Purported Repayment Plan, I would have thought that there is no necessity to grant the declaration sought in the exercise of my discretion. However, Mr Chin, counsel for P, submitted that it is unfair to have the Purported Invoices and Purported Repayment Plan, which Along may try to seek to enforce, hanging over P, in particular when at this moment it is not a certainty that Along will be struck off the Companies Registry and will be dissolved.

6.  On balance, in the exercise of my discretion, I consider it just to grant the declaration sought.

7.  Accordingly, I will grant an order in terms of the draft Order submitted as amended by me.