DBS BANK LTD v. HK JINCHENG INTERNATIONAL TRADING LTD

HCA 1069/2013

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF FIRST INSTANCE

HIGH COURT ACTION NO. 1069 OF 2013

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D E C I S I O N

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1.  On 17 June 2013, the plaintiff obtained an ex parte mareva injunction against the defendant. On the same day, the injunction, together with the writ and other documents, were served. Those documents included the plaintiff’s inter partes summons for the continuation of the injunction until further order of the court. Hence this hearing. The defendant is absent.

2.  Briefly this action arose out of the transfer of money from the Singapore currency bank account of one of the plaintiff’s customer by a third party allegedly forging that customer’s signature in April 2013.  The money has thus been transferred to other accounts in the USA and the UK as well as Hong Kong.  The defendant is the recipient of a sum of US$570,000 so transferred.  By a settlement agreement between the plaintiff and the customer in June 2013, the former became subrogated to the rights of the latter in pursuing the recovery of the money transferred away fraudulently.  Police in both Singapore and Hong Kong were involved.  The sums transferred to the USA and the UK have subsequently been recovered.

3.  On the materials before me, I am satisfied that both limbs of the American Cyanamid test for an application like the present one are satisfied.  The claim gives rise to serious question to be tried.  There is no opposition.  In fact, the defendant has a nominal capital.  Its address is that of its corporate secretary.  Its sole director is someone reportedly from the Ningxia Muslim Autonomy Region.  The risk of injustice to the plaintiff if an injunction is not continued is substantial.  Upon the usual undertaking as to damages, I give the order in terms of the inter partes summons.