A strong statement – Hong Kong court says arbitration agreement is "irrelevant" to the exercise of courts discretion in a winding-up

Another Hong Kong court decision has questioned whether the judgment in the leading case of Lasmos Limited v. Southwest Pacific Bauxite (HK) Limited [2018] HKCFI 426, may have gone too far when it suggested that an arbitration clause in an agreement should generally take precedence over a creditor's right to present a winding-up petition.

The decision in Dayang (HK) Marine Shipping Co., Limited v. Asia Master Logistics Limited [2020] HKCFI 311, follows similar comments made obiter by the Hong Kong Court of Appeal last year in But Ka Chon v. Interactive Brokers LLC [2019] 4 HKLRD 85 which underlined that a winding-up petition may only be dismissed by establishing a bona fide dispute on substantial grounds to the claim for the underlying debt.

Read More: A strong statement – Hong Kong court says arbitration agreement is "irrelevant" to the exercise of courts discretion in a winding-up


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