An Action Against H. & S. Bank An adjournment was granted by Judge A. G. Mossop in H.AE. Supreme [Court, on Monday, Dec. 9, in a case brought by Mr. Morris Zimmerman Jagainst the Hongkong. & Shanghai Banking Corporation. Messrs. HA. Recks anid Alexander N. Fishman appeared for the plaintiff, and Mr. G. Wright for the defendants. "The case follows litigation in. the Second. Special District Court between Mr. and. Mra, Zimmerman, og a result of which the Court tasued an order: fon August 28, 1954, restraining Mis. Freda Zimmerman from making ary. alteration in or disposing of any properties deposited inthe Hong-Kong & Shangha! Bank, the Yang-{ase Insurance Ca, Swan, Culbertson Fritz, and other firms. The total value of these properties is said to bein the neighbourhood of two million dollars, The injunction order bad been communicated to the Hongkong Shanghai Bank through the medium Sr It. Consul-General, on November 20, 1938, and the Consul-General had recently written to the President the Second Special District Court, stating that he had received a letter from. Messrs. Platt, White-Cooper Ca, stating that the said Arms, view of the British law, could ot'continue to withhold from Mrs Freda Zimmerman money which, was the subject of the injunction upon Mrs, Freda Zimmerman. The Consul-General wrote to the District. Court, pointing out that the three British firms concerned, if they', were continue withholding "this " money, tight be liable under British law. At the hearing Inthe Second Dis: {rlct Court, the Court advised Me. Zimmerman to. take proceedings in the British Court, Me. Zimmerman was therefore proceeding by a. writ against the Hongkong & Shanghai Banking Corporation for an injunetion Mr, Reeks said he thought no objection would "be made by the! defendants to the issue of an interim Mr. Wright said he would certainly oppose such, and submitted that no Injunction of this nature could be made against a. bank. 3 'The Judge said he did not agree with counsel for the defence that an. order could not be made, provided the plaintiff could show' that an injunction upon Freda Zimmerman had been made in the Special District Court in the terms of the Injunction asked for against the defendant, He did not see the; necessity for an action, as the matter appeared to be governed by Articles 83 and 39 (4), of the Order-in-Council which made it' punishable offence for any person "subject 10 the jurisdiction of HM. Supreme Court to do any act in relation to. Droceedings in' a Chinese. Court! which, if done in relation to proceedings in a British Court, would Amount to contempt of court. 'Inasmuch as the matter was before him on a return day, all that could be asked for at the moment was an order for pleadings, but, instead of making an order for pleadings, he wag prepared to grant' an adjournment for one week for counsel 10 together to see if an arrangement could be arrived at and 80. avoid the expense of an action, Counsel for the plaintiff intimated that he would prefer the action to 10] be adjourned for one week, during which time a copy of the "Chinese Court Order would be served upon the defendants, which, "he hoped, Would obviate the necessity of other legal proceedings. The adjournment was granted, $169,000 Claimed by Native Bank A claim for $169,037:3, alleged to be owed by Eckford Motors, Lid. of Tsingtao, to Moo Sheng-wu, a creditor of' Yi Ho-chen, was made by the latter, a native banking con: cern, represented by Mr. John Me-Neill, in H. M. Supreme Court, before judge P. Grant Jones, last Wednesday, Mr. M. Reader Harris appeared on behalf of the defendant company.
Tt was revealed that Moo Sheng-wu, who formerly acted 8s com= pradore to Eckford Motors, and also to Comabe, Eckford & Ca, of Chefoo, fan entirely separate concern from the former, absconded in. March, 1934, and has not been heard of The whole of the morning session iwas occupied by counsel arguing the nature of the case. Mr. MeNelllsubmitted that he was not required to produce certificates showing a debt ]was owing, because proceedings were not started as garnishee proceedings. They were in the nature of a gatnshee summons, but the case wes an action.
Mr. Harris maintained that, if the ease was not a garnishee summons, Jtsen it must be dismissed, because the allegation of indebtedness of his clients was to Moo Sheng-wu and not fo ¥i Ho-chen, The plaintiff, he held, fad no claim' upon' Eckford "Motors except by garnishee. Further, denied that the defendant. compony was indebted at all to Moo Sheng-wi. Eckford Motors owed Moo $224,000, [bat Moo later released them of this debt.
Mr. A. R. Hogg, managing director Jof the defendant company, and Mr.
Eckford, chairman of the: defendant company, gave evidence, Mtr. Hogg said that Moo Sheng-wu had Jagreed to wipe out a debt of $75,000 Jowed by the company to him, if the jassets of the company were handed lover to him for a period of ten years, JOn tegal advice this was found to be impracticable and it was then decided to transfer all the shares, with the Jexeeption of two, to Woo and. this would put him in virtual control of the company. Woo agreed and later signed an agreement, which also was signed by all shareholders. The trans for of shares, however, was never j Jcompleted, because Woo' absconded, 'After Woo absconded, Mr. Hogg. said, an action was brought against him' by Eckford Motors for money lost by Woo, stealing certain. promis sory notes of the company, and for wars and trucks, which he removed by trickery and "mortgaged. Jude ment was given in their favour for $28,728.45, Mr, Eckford said, that, when Woo absconded in March, he got away with $200,000 of peanuts Cornabe, Eckford & Ca, and miortraged ther.
Judgment' was reserved by Judge aus }P. Grant Jones in the case on Thurs-Jéay morning when counsel for both parties had summed up.
Counsel for the plaintiff, Mr, John /MeNeill, quoting from articles of the China Code of Civit Procedure mal tained that the Chinese Court has authority, under certain conditions, to accept a British judgment if {twas verified as an official document The Jsame applied, he said, to a Chinese Judgment being accepted in a British cour Counsel for the defendant com. ponys Mr. M. Reader Harris, said that it was possible for a foreign court to recognize a British Judgment when was a civil case of a defendant trying to escape his obligations by escaping from court jurisdiction. But, added, it was quite different in garnishee proceedings. He contended that there was no such thing as garnishee proceedings in the Chinese our
Text read from the printed page and cleaned; old type leaves the occasional error.