{"id":62765,"date":"2023-02-17T16:25:16","date_gmt":"2023-02-17T08:25:16","guid":{"rendered":"https:\/\/www.law.cuhk.edu.hk\/app\/?page_id=62765"},"modified":"2023-02-27T16:47:31","modified_gmt":"2023-02-27T08:47:31","slug":"the-approach-to-dismissing-insolvency-proceedings-in-favour-of-the-parties-agreed-forum-by-mr-ernest-leung-online","status":"publish","type":"page","link":"https:\/\/www.law.cuhk.edu.hk\/app\/centre-for-comparative-and-transnational-law\/comparative-public-law-research-forum\/the-approach-to-dismissing-insolvency-proceedings-in-favour-of-the-parties-agreed-forum-by-mr-ernest-leung-online\/","title":{"rendered":"The Approach to Dismissing Insolvency Proceedings in Favour of the Parties\u2019 Agreed Forum\u2019 by Mr. Ernest Leung (Online)"},"content":{"rendered":"\t\t
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CCTL Cross-Border Legal Issues Dialogue Seminar Series \u2013 \u2018The Approach to Dismissing Insolvency Proceedings in Favour of the Parties\u2019 Agreed Forum\u2019 by Mr. Ernest Leung (Online)<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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17 February 2023
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<< Back to The Centre for Comparative and Transnational Law<\/a><\/h4>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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The Hong Kong Court of Appeal handed down judgment in\u00a0Guy Kwok-Hung Lam v Tor Asia Credit Master Fund LP\u00a0[2022] HKCA 1297 on the question of whether a bankruptcy petition should be dismissed on the basis of an exclusive jurisdiction clause in favour of a foreign court. The Court of Appeal held that since the petition fell\u00a0within the scope of the clause, the petition ought to be dismissed. The same analysis would by analogy apply to winding-up petitions. While a decision at the Court of Appeal level is helpful in bringing certainty to understanding the interaction between an exclusive jurisdiction clause and insolvency proceedings, the question of whether the same approach should apply to arbitration clauses was deliberately left open and remains unsettled.<\/p>

The story begins with an English Court of Appeal decision \u2013\u00a0Salford\u00a0\u2013\u00a0where the court held that insolvency proceedings should generally be stayed save \u201cwholly exceptional circumstances\u201d in favour of the parties settling the dispute in an arbitration clause. The approach eventually found its way into Hong Kong through a First Instance decision\u00a0but the Hong Kong courts have since doubted the correctness of the\u00a0 Salford\u00a0 approach. The\u00a0 Salford\u00a0 approach\u00a0 has, however, been followed in various common law jurisdictions and has nonetheless been adopted (albeit with some modification) by the Singapore Court of Appeal. Given parties commonly include arbitration clauses in agreements, an answer by the HK courts at a higher level is long-awaited.<\/p>

This seminar discusses the Court of Appeal\u2019s reasoning in\u00a0Guy Kwok-Hung Lam\u00a0and its implication for the approach to arbitration clauses in the future. The seminar will also touch upon the instructive guidance provided by the Singapore Court of Appeal in approaching the issue, and judgments from other common law jurisdictions.<\/p>

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