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Case details

FamilyMart China Holding Co Ltd (Respondent) v Ting Chuan (Cayman Islands) Holding Corporation (Appellant) (Cayman Islands)

Case ID: JCPC 2020/0055

Jurisdiction: Court of Appeal of the Cayman Islands

Case summary

Issue

Should a petition to wind up a company fall solely within the exclusive jurisdiction of the courts or is the dispute suitable for arbitration?

Facts

CVS (Cayman Islands) Holding Corp is a company incorporated in the Cayman Islands (the “Company”). It is the ultimate owner of a business comprising some 2,400 convenience stores in China. The Appellant (“Ting Chuan”) owns 59.65% of the shares of the Company. The Respondent (“FamilyMart”) owns the remaining 40.35%. Ting Chuan and FamilyMart are parties to a shareholder agreement which contains an arbitration agreement.

On 12 October 2018, FamilyMart filed a petition to wind up the Company, complaining about Ting Chuan’s conduct of the Company’s affairs. Ting Chaun applied to strike out this petition on the ground that any disputes should be resolved by arbitration. The High Court dismissed the strike out application but ordered the petition be stayed until the complaints in the petition had been arbitrated. The Court of Appeal allowed FamilyMart’s appeal, holding that no part of the petition was arbitrable. Ting Chuan now appeals to the Judicial Committee of the Privy Council.

Parties

Appellant(s)

Ting Chuan (Cayman Islands) Holding Corporation

Respondent(s)

FamilyMart China Holding Co Ltd

Appeal

Justices

Lord Reed, Lord Hodge, Lord Lloyd-Jones, Lord Briggs, Lord Kitchin

Hearing start date

15 November 2022

Hearing finish date

16 November 2022