Our Partner Roy Leung and our litigation associate Jenny Wong led our litigation team in representing China CITIC Bank Corporation Limited Tianjin Branch, CITIC Bank International (China) Limited, Beijing Branch and China CITIC Bank International Limited (collectively referred to as “CITIC”) in series of proceedings in the High Court and the Court of Appeal in relation to an overdue indebtedness arising from a syndicated loan in the sum of over HKD8 Billion against Pan Sutong and a company controlled by him, including resisting his injunction application and the corresponding appeal (Case Nos: HCMP222/2021 and CACV301/2021), his application for setting aside the statutory demand (HCSD3/2021), company winding-up petition (HCCW295/2021) and bankruptcy petition against him personally (HCB6548/2021). After rounds of hotly-contested legal battles, our firm succeeded in obtaining winning judgments for the proceedings abovementioned. On 8th July 2022, the Court granted a Winding-up Order against Silver Starlight Limited and a Bankruptcy Order against Pan Sutong.
This series of proceedings involved various issues of law and fact, including (1) jurisdiction of the Hong Kong Court in winding up an overseas company; (2) whether there was bona fide dispute in relation to the said debt; (3) whether or not CITIC unreasonably obstructed Silver Starlight Limited and Pan Sutong in selling the lands, etc. The case papers involved over 4300 pages.
The series of proceedings moved at a cracking pace. Silver Starlight Limited and Pan Sutong attempted to oppose vigorously, launching severe resistance in every single step in the proceedings. Our team and counsel team worked closely and seamlessly day and night and managed to present the opposing evidence to the point with good analysis. Three Honourable Judges sitting in the Court of First Instance and the Court of Appeal (in CACV301/2021) rejected the alleged existence of the overall oral agreement by Silver Starlight Limited and Pan Sutong, summarized as follows : -
HCMP 222/2021
Deputy High Court Judge Mr. MK Liu ruled in favour of our arguments in his judgment that Hong Kong Courts had jurisdiction to wind up Silver Starlight Limited, rejected the existence of the alleged overall oral agreement and confirmed that CITIC had not unreasonably obstructed the sale of the lands concerned. The Court dismissed the injunction application with costs to CITIC and even allowed the certificate for three counsel.
CACV301/2021
The Court of Appeal confirmed and agreed the judgment below in HCMP222/2021 and dismissed the appeal with costs to CITIC and certificate for three counsel.
HCSD3/2021
Deputy High Court Judge Le Pichon dismissed the application by Pan Sutong for setting aside the statutory demand. The issues in dispute involved res judicata, issue estoppel and the “new” evidence after the HCMP 222/2021 judgment. Her Ladyship granted leave to issue bankruptcy petition against Pan Sutong, with costs to CITIC and certificate for three counsel.
HCCW295/2021 & HCB6548/2021
The Honourable Madam Justice Linda Chan held that Silver Starlight Limited and Pan Sutong are bound by the determination and findings made by the Courts in the judgments of HCMP222/2021, CACV301/2021 and HCSD3/2021. Both of them should not attempt to re-litigate the same issues which have already been decided by the Courts against them. Since Silver Starlight Limited failed to fulfill the statutory demand, which should be deemed as inability to pay its debt, the Court granted a Winding-up Order against it. As for Pan Sutong, he failed to comply with the statutory demand and the debt remains unpaid, together with the fact that it was ruled that there was no bona fide dispute in relation to the debt by the Bank of China (Shenzhen) to Pan Sutong which he was unable to pay, he is deemed unable to pay his debts. The Court granted a Bankruptcy Order against him.
This series of proceedings was led by our litigation partner Roy Leung and our litigation associate Jenny Wong, with the assistance of our litigation associates Alan So and Winnie Hui.
