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United Kingdom

Hong Kong CFI orders security pending challenge to enforcement of CIETAC award; Soleh 'manifestly invalid' test applied over IPCO; non-payment leads to dismissal of set-aside application.

Published on: 25 April 2024

Published by a LexisNexis Arbitration expert
Legal News
Table of contents
  • What are the practical implications of this case?
  • What was the background?
  • What did the court decide?
  • Case details
Article summary

中國機床銷售與技術服務有限公司 (China National Machine Tool Sales and Technical Service Corporation) — Plaintiff; 國晟機電設備有限公司 (Nationsync Electrical And Machinery Equip. Corp Ltd) — Defendant; HCCT 48/2023; [2024] HKCFI 958

What are the practical implications of this case?

This ruling underscores the Hong Kong courts’ pro‑arbitration outlook. Attempts to resist enforcement of an award are not treated lightly, and the court will contemplate dispensing with security only where:

  • the award is patently invalid; and
  • the ease of enforcing the award would not be compromised by declining security.

The Hong Kong court confirmed the applicability of the Soleh guidelines in Hong Kong.

What was the background?

The dispute proceeded to arbitration under the 2015 CIETAC Rules. The arbitral process was initiated after the plaintiff obtained an injunction that froze the defendant’s assets in Hong Kong...

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