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　　In respect of the adjournment of proceedings, the court pointed out that the absence of provisions specifically on adjournment in relation to the enforcement of a Mainland award, of which equivalent provisions in relation to the enforcement of an ordinary award or a convention award are present in the Arbitration Ordinance, does not mean the court has no jurisdiction to adjourn enforcement proceedings on a Mainland award.  The court held that it had general and inherent power to regulate its own proceedings including adjournment, which power is presupposed in Order 73 rule 10A of the RHC

　　Issue 2

　　The court referred to principles set out in Soleh Boneh International Ltd v Government of the Republic of Uganda [1993] 2 LLR 208, where the English court decided to adjourn hearings and require the provision of security in the entire amount of the award pending the Swedish court’s determination of whether the award was binding.  On appeal of that case, the court considered two factors – the strength of the argument that the award is invalid, on a brief consideration by the court, as well as the ease or difficulty of enforcement of the award and whether enforcement would be made more difficult by movement of assets or by improvident trading if enforcement was delayed. The stronger the argument for invalidity of award, or the stronger the case for difficulty of enforcement as a result of delay in enforcement, the more likely the provision of security is ordered.

　　In light of the above principles, the court considered a number of aspects of the present case, including the fact the Respondent had not produced any documents stating grounds or merits of its application to the People’s Court in the Mainland to set aside or dismiss the Award in support of its contention that it was “manifestly invalid”; the fact that the Respondent had changed its registered office; the fact that the Respondent had sold its industrial property, the fact that the Respondent’s financial performance was deteriorating and shares in the Respondent company (described as obsolete asset) were sold by its parent company shortly after the Award was made; as well as the publicly announced total assets (approximately HK$45.04 million) and unaudited net liabilities (approximately HK$143.50 million).

　　IV.Decision

　　On the basis of the foregoing factors, and the fact that no submission on the specific amount of security that would be beyond the capacity of the Respondent was made, the court ordered adjournment of the Summons pending resolution of the application to the People’s Court in the Mainland to set aside or dismiss the Award, and security in the sum of HK $20 million to be provided to protect against any deterioration of the prospects of successfully enforcing the Award in Hong Kong as a result of the adjournment.

　　V.Significance

　　The High Court of the HKSAR has the jurisdiction to adjourn hearings relating to the enforcement of a Mainland award and order provision of security by the Respondent.

　　As to whether the Respondent should be ordered to provide security to satisfy the award, the court should consider two factors, first, the strength of the argument that the award was invalid. If the award was manifestly invalid, there should be an adjournment and no order for security; but if it was manifestly valid, there should either be an order for immediate enforcement or an order for substantial security. Second, the Court should consider the ease or difficulty of enforcement and the effect of any delay in enforcement, for example by the movement of assets or improvident trading.