Section 21m High Court Ordinance

Relief Scope

Primary types of orders available under this statutory power include the Mareva injunction and the Anton Piller order. A Mareva injunction freezes the assets of the defendant up to the value of the claim, preventing them from moving funds out of the jurisdiction. An Anton Piller order allows the claimant to enter the defendant’s premises to search for and seize evidence that might otherwise be destroyed.

These measures are designed to preserve the status quo until the foreign court can make a final decision on the merits of the case. The court in Hong Kong does not decide who is right or wrong in the main dispute; it only considers whether it is just and convenient to provide the temporary protection.

Judicial Discretion

Granting of the relief is not automatic and depends on the court’s assessment of several factors. The applicant must demonstrate that there is a good arguable case in the foreign proceeding and that there is a real risk the defendant will hide or waste their assets. The court also considers whether the relief would be seen as an interference with the foreign court’s own powers.

If the foreign court has already refused to grant an injunction, the Hong Kong court will be very reluctant to step in. The judge will balance the potential harm to the claimant if the order is refused against the potential harm to the defendant if the order is granted. Applicants are usually required to provide an undertaking as to damages, which is a promise to compensate the defendant if it later turns out the injunction should not have been issued.

Foreign Nexus

Effectiveness of the order depends on the ability to serve the notice on the defendant or their representatives in the territory. Once a bank or a local subsidiary is served with a freezing order, they are legally bound to comply and can be held in contempt of court for any violation. This creates a powerful deterrent against the movement of money through the Hong Kong financial system.

The law recognizes that in a global economy, assets are often held in different jurisdictions from where the dispute arises. By providing this support for foreign litigation, Hong Kong maintains its position as a major center for international dispute resolution. The rules also apply to arbitration proceedings, allowing parties to secure assets while waiting for an arbitral award.

Section 21m High Court Ordinance remains a fundamental component of the international judicial cooperation framework in Hong Kong.