CHONG CHIN AND ANOTHER v. GUOAN INTERNATIONAL LTD

HCCL 9/2020

[2022] HKCFI 367

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF FIRST INSTANCE

COMMERCIAL ACTION NO 9 OF 2020

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DECISION

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1.  I shall state my decision succinctly for this application for stay pending appeal as follows.

2.  Firstly, I do not find strength in any of the grounds of appeal advanced in the Notice of Appeal.  It is noteworthy that the Defendant did not apply at the hearing of the summary judgment application for an adjournment.  In any case, the Defendant has a heavy burden to discharge on its application to adduce fresh evidence in the appeal. 

3.  Secondly, the picture before the court is stark. The Defendant’s subsidiary had succeeded in acquiring the Plaintiffs’ company (Yicko), but it has not even honoured the first of 3 convertible bonds it had issued for the purchase price.  On the other hand, the evidence is that the Defendant had sought to obtain a distribution of dividends from Yicko even after the grant of the summary judgment by this court.

4.  Thirdly, although I can see that the absence of a stay may cause prejudice to the Defendant due to the pending winding up proceedings, there is evidence that it is in considerable financial trouble. However, the evidence is that the Defendant is being funded by its resourceful controlling shareholder.

5.  Finally, to balance against that prejudice and also the interest of the Plaintiffs as judgment creditors, I am only prepared to accede to the stay application upon payment of the judgment sum into court.

6.  I shall hear the parties on the terms of the order and costs.