——PGMC-CNEP Shipping Services Corp. and Zhongheng Hexin Shipbuilding Nantong Corp.

Key Word: Civil；Application for Recognition and Enforcement of a Hong Kong Arbitral Award；Insolvency；Suspension of Review；Enforceability of the Award

Fact:

In August 2022, a Philippine shipping company (hereinafter "Applicant") entered into a Shipbuilding and Sale Contract with a Nantong-based shipbuilding company (hereinafter "Respondent"), pursuant to which the Respondent was commissioned to construct two 3,000-ton transport barges. The contract provided that any disputes arising thereunder be submitted to arbitral proceedings administered by the Hong Kong International Arbitration Centre (hereinafter HKIAC). After the vessels were substantially completed, a dispute arose between the parties concerning the progress of payment for sea trial costs. The Applicant thereupon initiated arbitral proceedings before the HKIAC. In September 2025, the HKIAC rendered Arbitral Award No. HKIAC/A24057. Following the issuance of the award, the Applicant filed an application with the Court for recognition and enforcement of the said arbitral award.

Judgment:

The Court held that proceedings for recognition and enforcement of Hong Kong arbitral awards fall within the purview of interregional judicial assistance and possess independent procedural significance. They are distinct from ordinary civil litigation and arbitral proceedings, and therefore do not fall within the scope of proceedings that should be suspended under Article 20 of the Enterprise Bankruptcy Law of the People's Republic of China. Even if the Respondent were to enter into bankruptcy liquidation proceedings, safeguarding the review process for recognition and enforcement of the arbitral award would facilitate the Applicant's timely filing of claims in the bankruptcy proceeding and also facilitate the timely determination of the Respondent's aggregate indebtedness. The review proceedings for recognition and enforcement of an arbitral award are also distinct from enforcement implementation proceedings and do not prejudice the lawful rights and interests of other creditors. The Court rendered a ruling which recognize and enforce Arbitral Award No. HKIAC/A24057 rendered by the Hong Kong International Arbitration Centre on 30 September 2025.

Typical Significance:

This case concerns an application for recognition and enforcement of a Hong Kong arbitral award, involving a dispute between a Philippine mineral enterprise and a Chinese shipbuilding enterprise. The ruling clarified that proceedings for recognition of an arbitral award constitute proceedings for the ascertainment of claims, rather than proceedings for compulsory enforcement of property, which are not suspended by reason of the debtor's entry into bankruptcy liquidation proceedings, thereby underscoring the independent procedural value of recognition and enforcement proceedings for Hong Kong arbitral awards. In the course of review, the Court also examined the enforceability of the arbitral award as part of its review, thereby mitigating potential obstacles in subsequent enforcement implementation. The proper handling of this case not only reflects the judicial philosophy of China's maritime courts in according equal protection to both Chinese and foreign parties, but also demonstrates the consistent stance of China's maritime courts in supporting Hong Kong arbitration in accordance with the law, and bears positive significance for enhancing Hong Kong's status as an international legal and dispute resolution services centre in the Asia-Pacific region.