Bypassing Arbitration Clauses – To Injunct Or To Not Injunct?

To injunct or to not injunct – and if so, where at? That is the question that many face when foreign just and equitable winding-up proceedings have been taken out, despite the presence of an arbitration clause governing the contractual dispute. Can one bypass arbitration in order to save costs and time?

As mentioned in our earlier article, the case of X v Y [2025] HKCFI 4796 serves as useful guidance for litigants when facing such a dilemma.

Grant of Anti-Suit Injunction

Citing Bank A v Bank B [2024] 5 HKLRD 250, the Court stated that it would generally, under the Arbitration Ordinance and High Court Ordinance, grant an anti-suit injunction to restrain litigation proceedings if such continuation would breach an arbitration agreement in place between the parties. Strong reasons would be required to displace such a prime facie right.