Meaning
Judicial authority to grant an injunction against a third party who is not a primary defendant in a legal action. The chabra jurisdiction is invoked when there is reason to believe that the third party holds assets belonging to or controlled by the defendant. This power prevents the concealment of wealth through corporate shells or nominees who might otherwise assist in evading a future judgment.
Injunction Standard
High Court of Hong Kong exercises this power when a claimant demonstrates that a third party is effectively a depository for the assets of the debtor. The chabra jurisdiction requires proof that the assets are available to satisfy the judgment against the principal party. Mere possession is insufficient, as the court looks for evidence of control or beneficial ownership.
Evidence Requirement
Applications must include detailed affidavits showing the link between the defendant and the third party holder. Courts scrutinize the relationship to ensure the injunction does not unfairly freeze the independent property of an innocent entity. The chabra jurisdiction is a functional tool in complex maritime and trade finance disputes where multiple subsidiaries are used to shield capital, ensuring that the final judgment is not rendered useless by the strategic movement of funds during the litigation process.
Execution Risk
Failure to establish the necessary link results in the immediate discharge of the order and potential liability for the applicant. Legal teams must verify the flow of funds before approaching the court.
