 [2026] HKCFI 2854 (reported in [2026] 2 HKLRD 1401), the Court considered a public policy challenge to the enforcement of a Mainland arbitral award based on post-award evidence of wrongdoing.

In 2012, K and JX entered into a cooperation agreement to develop two pieces of land. Disputes later arose, leading JX to commence proceedings in Hong Kong seeking damages of over RMB 160 million, alleging that K conspired with other contracting parties to misappropriate the lands.

In 2021, the parties purportedly entered into a settlement agreement requiring JX to discontinue the Hong Kong proceedings. JX did not comply. In 2022, K commenced arbitration to enforce the agreement. JX contended that the agreement was invalid because C, who signed on its behalf, lacked authority. The tribunal rejected that defence, holding that K had reason to believe C was duly authorised, given his use of JX’s corporate seal.

In 2024, K obtained leave to enforce the award in Hong Kong. JX applied to set aside the enforcement order, relying on post-award evidence that he had been bribed into signing the settlement agreement without JX’s authority. Given the seriousness of JX’s allegations, the Court took the exceptional step of directing that oral evidence be heard.

 [2026] HKCFI 4344, K applied for leave to appeal, contending that the Court had impermissibly reviewed the tribunal’s findings on the settlement agreement’s validity and had ruled in JX’s favour on a public policy ground not advanced by it. Although the Court held that the appeal had no reasonable prospect of success, it nevertheless granted leave in the interests of justice.

This case represents a rare instance of a successful challenge to the enforcement of an arbitral award on public policy grounds. The Court of Appeal is expected to provide guidance on the scope and limits of such challenges.

, instructed by Boase, Cohen & Collins, acted for the Respondent.

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