4. What can I (as a judgment creditor) do if I successfully obtain a judgment against the judgment debtor but believe he attempts to dispose of his assets in order to evade liability?
It may be necessary for you, as the judgment creditor, to take immediate steps against the assets of the judgment debtor, where there is evidence to suggest that the judgment debtor is planning to dispose of his assets to evade the consequences of a judgment obtained against him. In such case, you can apply to the court for a post-judgment Mareva injunction.
A post-judgment Mareva injunction is a court order made to keep matters in their original state, which effectively restrains the judgment debtor from disposing of or dissipating his assets, so as to protect the judgment creditor’s ability to enforce the judgment. Breach of a Mareva injunction by the judgment debtor can lead to serious consequences, such as imprisonment.
Under section 21L(1) of the High Court Ordinance (Cap. 4), the Court of First Instance has the power to grant an injunction in all cases where it appears to the court just and convenient to do so. It is also well established in previous judgments that a Mareva injunction may be granted to a judgment creditor after he has obtained a judgment, provided there is a real risk that the judgment debtor may dispose of his assets to avoid execution.
In short, the court may grant a post-judgment Mareva injunction if the judgment creditor can prove the following matters:
- he has a good arguable case;
- the judgment debtor has assets within Hong Kong;
- the balance of convenience is in favour of granting this injunction order; and
- there is a real risk of dissipation or secretion of assets by the defendant after the judgment.
For more information about Mareva injunction, please refer to “What can the plaintiff do if the defendant is likely to dispose of his assets improperly before the case proceeds to trial?”
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