1940-01-05 — Page 28

8.

Friday,

HONGKONG TELEGRAPH

Japanese Appeal Against Chief Justice's Verdict Is

January 5, 1940.

Dismissed

WINDING UP OF CHINESE SHIPPING

CO.

CONFIRMED

BY

INTERESTING JUDGMENTS

DELIVERED TO-DAY

JUDGMENT WAS DELIVERED IN THE APPEAL COURT THIS MORNING BY MR. JUSTICE R. E. LINDSELL AND MR. JUSTICE J: A. FRASER, DISMISSING THE APPEAL AGAINST THE ORDER MADE BY THE CHIEF JUSTICE, SIR ATHOLL Macgregor, DIRECTING THE WINDING UP OF THE CHING KEE STEAM NAVIGATION COMPANY. THE APPELLANTS WERE THE DAIREN KISEN KAISHA AND OTHERS, WHO WERE REPRESENTED BY MESSRS. H. G. SHELDON K.C., AND LEO D'ALMADA E CASTRO, JR. INSTRUCTED BY MR. H. J. ARMSTRONG, OF DEACONS. THE RESPONDENTS WERE THE CHINA MERCHANTS STEAM NAVIGATION COMPANY FOR WHOM MESSRS, ELDON POTTER K.C. AND H. C. MACNAMARA APPEARED IN- STRUCTED BY MR. D. L. STRELLETT.

TWO LENGTHY JUDGMENTS DELIVERED BY THEIR LORD- SHIPS DISMISSING THE APPEAL FOLLOW.

FULL

COURT

was rightly made and that this op-been suggested, nor is it arguable, peal should be dismissed with costs that the company is incorporated

MR. JUSTICE FRASER

Mr. Justice Fraser said:

I agree with the judgment which has just been delivered by the learned Pulsne Judge.

The Ching Kee Stenro Nevigation Company, Limited, is a company in- corporated under the laws of the Republic of China and having its principal place of business at Chefoo In the Province of Shantung, now occupied by the Japanese forces.

elsewhere than in China or otherwise than by the law of China.

Hut, os Palmer'says in his Company! Law, 16th edition, ut page 46-

"A corporation, it must be remember. ed, is not, like a partnerstilp or a family, a mer collection or aggregation of Individual units. It is, in contemplation of law, a person distinct from the mem bers or snreholders who are interested in 11-a metaphysical entity con venient fletion of law, but with no physical existence. An Lord Selborne haki (G. E. Rali. Co. v. Turner, 8 Ch. App. 192):

incre The costpnny Is A abstraction of law.

And Dicey, 5th edition, at page

The company is carrying on busi- ness in Chefoo, Dairen, An Tung, Tientsin, New Chwang, Tsingleo and 136, says Shanghai, and its ships the

Chinese flag. But that they do to is Rite more than a fiction. The ships enjoy only a limited freedom. Their movements are controlled by Japan- ese agents.

With that state of affain the majority of the shareholders, who are the appellants in this case, ap- pear to concur. But there are fifteen hundred of them, the respondents in this case, who do not concur with the action of the majority, who wish to dissoclate themselves from it and { the other shareholders, and who to that cnd have petitioned in the Chinese courts for the dissolution of the company. All the shareholders to the have submitted themselves

sonal Court of Szechuan, for the winding-up of the Ching Kre Com- pany to have been duly and effec- tively made by a Court of competent jurisdiction, and that the existence of the Company in China, was, cx- Chinese courts, which have ordered cept for the purposes of its winding the dissolution of the company. up; terminated by that order.

cannot therefore see how it can be contended that the company, the corporate juristic existence of which has ceased, should be deemed to be still in being merely because it is

netivities still carrying on its

North China. It I understand him aright, Mr. Sheldon submits that

The jurisdiction of inferior courts in China is derived from section 2 of Article II of the Chinese Civil Cole- "Regarding the proceedings against a private juristic person or other corpor- ate bodies capable of being made parties in a sult, the court of the district where Its principal office or principal place of business is shall be of competent juria. diction."

Mr. Justice Lindsell said:

was no longer in the hands of the that the and This is an appeal against an order Chinese judicature, made by Sir Atoll MacGregor C. Jorder was therefore a mullity. And in these proceedings dirceting he the same view is also at first sight winding up of the Ching Kee Steam supported by two of the cases relied Navigation Company which is an un-on by the respondents, Bank of registered Company within the mean- lepa v. National Bank of Egypt Ing of the Compania, Ordinance, (1937 Chancery 513) and Banca de 1932. but is incorporated under the Batao Sancha (1938, 2 Chancery laws of the Republic of China with 170), in each of which it was held headquarters at Chefon In

the pro-that where "de facto" sovereignty vince Shantung and has (or had)ver a country or part of a country n branch office in this Colony. The has been established by an invader facts are fully set out in the Jug the English Courts will not give effect ment of the Court below and need decrees by the dispossessed over not be recapitulated. The applica-sign of the country purporting to

But the court to which application tion for winding up was based on take effect in the invaded and occupi-: thore activities, sponsored as they would ordinarily have. been made, three grounds, on each and all of ed area, even though he is regarded must be by the Japanese, have con-namely the Chefoo District Court, which the learned Chief Justice held by His Majesty's Government as still verted the company into an ullen was prevented from exercising its that the petitioners (the present res retaining "de jure" sovereignty. enemy of China, with the affairs of functions by the military occupation pondents) were entitled to succeed.

Fallacious Assumption which this Court cannot interfere, of Chefoo by the Japanese. A special

here might be Those grounda were:-

in court of first instance was appointed Whatever force there In my judgment, however, this (1)

that there had been a wind-

this contcation if the company were by an order of the Supreme Court ing up order made by a view is based on the fallacious as-

still incorporated for all purposes of China, under Article XXIII of the Court of competent jurialieption that there is no distinction

under the laws of

it seems Chinese Revised Code of Civil Pro- tion in the country in which in law between military occupation

ecuure, by which- the company was incorporat- and "de facto" sovereignty. Keading to me that

has

automatically de-

the court directly higher than corporation ed, and, as

result of that chapter IV of Hall's Treatise as

the court whose furisasetión la in queA- of any such status. It may prived it orter, the corporate powera whole I can find no support for the

tion sisall appaist, on the application of well be that the persons responsible

A party to the proceedings, a court of of the company had been contention that in modern times an

Invader is regarded by international for its scontinued activities under the

competent jurisdiction when a destroyed in that country;

law as "de facto" sovereign of the aegis of Japanese Interests have

court of competent jurisdiction is, by ruggs of law or tack, prevented from that he company had in faci

broken the laws of China by trading exercising: its power of conducting a erased to carry on bustacos erritory he has occupied.

with enemy subjects but it is In the Colony;

Individuals and not the corporation who are now carrying on business. The corporation itself is dead. Since then the parent trunk has few all

how can this Court be reasonably asked to say that a branch is sull alive?

(1)

(ii)

At page

a

558 Hall makes it clear

ItsChing..

f

The domich of a corporation is the place vangidered by law to be the cen tre of its Tales which,{1} in the case of a trading corporation in its principal place of business, .e. the place where the administrative business of the cor Iration in carried on... and in paragraph (4) of bls comment on this rule-

A scene from "Springtime Sulle" which will be presented by Ure George Goncharoff School of Dance -at the King's Theatro next Wednesday and Thursday,

227, where it was held that the omission to include in a bill of Inding statement required by an enact- ment of the Newfoundland legislature did not muke the bill of lading Illegal. One of the terms of the contract was

claring extinguished, suspended or un- enforceable in a court of law the right and the rights of action of the inhabit- ants: and Article XLlit provides that the occupant must respeel. unless ab Aglutely prevented, the laws in force in the country. There is no doubt that an occupant may suspend, the juges as well as other officials. However, if heThis contract shall be governed by does suspend them he trust tamiri appoint others in their place. If they are willing to serve under him, he muit

respect dicir independence according to the laws of the country. If ham, how-

English law."

Chinese In Namo Only

The question here is not whether

ever, no right to constrain the courts to the contract of agency is valid by the particular place, but Tero

pronounce their verdlets in its name, law of any is this further essential difference

although he need not allow them to whellter the maiding of such à con- between the damletl of a

pronounce verdicts in the name of the net by the directors is a proper natural person and tim comic of a corporation. The domicll of a human

legitimate governinent,”

excrciso of thole

rcul powers The beint 1 fact which, on certain points, No Extra-Territorial Jurisdiction CXC subjects him to the law of a particular country. The domlet of a corporation It is true that the Japanese in object of the contract is not so much lo enable the company to trade, for the order of the Chinese court. Bul

Arm were that can have no effect on the decision for the war, or by a neutral

make it any less binding or less not for the same reason, but to put its ships and business in Hongkong in worthy of respect in the' courts of ai

the hands of an enemy firm. The friendly country,

ships would still fly the Chinese but would have Japanese crews. The branch of the company in Hongkong

would be Chinese in

is a fiction suggested by the feet that Shunting need not aid in executing that it could do by itself were it not

a corporation 10, on certain points. 4... the jurisdiction of the Courts, subject to the law of a particular country, Hence à corporation may very well bo considered domiciled, or resident. în n country, for one purpose and not for another, and hence, too, the great u certainty an to the facts which deter mine the domizil, or residence, of n corporation. In each case the particles question is not whether a corporation has in reality a permanent residener in a particular country, but whether for certain purposes leg.. aubmission to the jurisdiction of the Costin, or the zifur of 115 shares, or Hability to, taxas ton), a corporation is to be considered as resident in England, or la somme other Country"

Question Of Domicilo

It seems therefore that for some

It is but necessary for me to con- sider what would happen if the Japanese authoritles were to interfere

ส

to prevent the execution of the order would be controlled by Japanese and of the Chinese courts. In that case would

name only.

of

the

law of its own, and there is nothing for quity. They have every reason

no cloubt the decision in De Jager v. Eudi a change in the conduct Attorney General of Natal, (1007) business, it is safe to say, was never A.C. 320. would apply and the dis- contemplated by the constitution of solation of the company would be the company. The purpose of the suspended temporarily in Shantung contract of agency is legal by the or wherever the administration was law of China and could not have been In Japanese hands, but not elsewhere, one of the purposes for which the purposes the domielle of the company It has been said in this case that company was incorporated: it is a may be in enemy territory. that is, the Chinese courts. In making their ground for dissolution of the com. the occupied Province of Shantong, order have purported to exercise pany by the Chinese courts. but for the purposes of its incorpora-extra-territorlat jurisdiction in Shan- The respondents, it seems to me,, tion is domicile remains in coun- lung. That however is not the case, are amply justified in asking that the try of its incorporation, at least 10 The Chinese courts were dealing with Hongkong branch of the company be long as Chinese law is the ordinary a company incorporated in China, not wound up, on the grounds of justice civil law of the Province of Shan- in Shantung, which has no separate, and

that the directors have saying tung.

That, at least, is the view which has | in this case to show that, except exceeded their powers and, in the apparently been taken by the Chinese where for special purposes the com- conduct of the company's affairs. courts. It accords with the principle winy is treated as an enemy. Its have forfeited the confidence of the that a corporation can only be dis- character is in any way altered by, respondents. solved in the country of its incorpora- the Japanese occupation. If it were

Only Law Of China tion. Have the appellants shown any otherwisa, indeed, the company would In this case we are faced as regards ground for departure from or madl-automatically have ceased to exist as the dissolution of the company In deation of this principle in the present company, except for the purposes China with no alternative law but the case?

of winding upon the military law of China no alternative court

and The special court ordered the dis-

The strongest view put forward in │cupation of Shantung by the Japan- but the courts of China. There is no ese, Chinese law could not operate problem here, as there was in The solution of the company and from support of the argument that Chinese

urisdiction is suspended in Shan- there to keep the company alive. for Bank of Ethiopia v. National Bank that decision the appellants in this case appealed to the Supreme Court

R. (1037) tional Lasy, published in 1878, Volume That argument pursued to its logical Ch. D. 313, of a de facto govemment. Acquired Enemy Character

II, rare 182, para. 14-

conclusion would defeat its object. Chinese court duly appointed It is here contended that the "The duty of allegiance is reciprocal for the association of

to the jurisdiction Chinese courts had no

duty of protection. The

were formerly bound together by a according to the law of China sovereignty of the state which is thus because, it is said, the administration

unable to protect its territory is dia. nexus of corporation would automa- ordered the dissolution of the com- of Shantung by the Chinese has been

placed and that of the conqueror sub-ically cease to be so bound in Shan- pany. The onus is on the appellants that that court had no Bluted in its stead" replaced by the military jurisdiction

tung, and the question that would to show In regard to allegionce, that is. the then arise would be-

jurisdiellor. Their argument 18 In re Russian Bank for Foreign of the invaders, the allegiance which Trade (1933, 1 Ch. 745) and Lazard the company formerly owed to China

Jawful obedience which a subject is

whether the sacation is not to based, firstly, on the milltary breupa Brothers & Co. Midland Banking been displaced in favour of nt. hound to render to his rovereign,

be treated here as an assnclatice or tion of Chefoo where the jurisdiction (1933 A. C. 280) are the clearest

Halleck is obviously referring to a partnesslily--t--natural-persons wisano. cf-the-invader-is-limited-to-military

relation inter se are to be found in the local allegiance only, like that which

articles of association of the company necessity, and secondly, on the fact art are to be ascertained no doubt with that the company for, some purposes reference to the lex ipcl contractus, but an allen owes to the sovereign of the

deemed to have acquired an enemy country in which he may be. In this

whicti I nevertheles an armbelation regard he goes on to re

the

bearing."

that it was just and equitable that this was the old theory the that the company should be theory of partial and substituted wound up since its

Sovereignty-whereas "recent writers sub- stratum had disappeared and adopt the view that the nets which a belligerent In are permitted to as a shipping concern it was

tnts of hostilities, that the authority legitimate business.

which he exercises is a form of the Spearhead Of Attack

areas which he puts upon the enemy, Each of these rounds has been that the rights of the sovereign re- nasaited (as in the Court below) by main intact, and that the legal rela- Mr. Sheldon on behalf of the appell- tions of the population towards the onts but the spear-head of his attack invader remain unchanged." So also hus with our permission, bren now the Frenchs Manual de Droit Inter directed along a new line and has antional (page 93) "Poccupation est been aimed at the compciency of the simplement un etat de falt qui pro» possible authority for the proposition/allegiance to Japan, and the company

quite unable to carry on occupied territory are merely incid- practical purposes' ctased to exist, of. China, which rejected the noneul. tung la o passage in Halleck's Interna- | China would have no jurisdiction. of Egypt and Liguori, L.

n'est

te

A Submerged Wreck

Chinese Court concerned to order the duit es consequencer d'un cas winding up of the company in China, force majeure; l'occupant

that, once a foreign corporation has has now nequired an enemy charac

ter which would rumove it from thr. pas, been dissolved by an act of the juridiction of the Chinese courts not so much on account of that substitutive en droit 話した gouverne- foreign state which gave it being even if in fact they were able t Court's inability to enforce its order

the corporation will no longer be enforce their judgment that the com- ment legal" ns because, the province of Shantung

Furthermore, so far from recognis- regarded by English law as still being occupied by the Japanese the supercession by an invading existent, and, 13 Maugham J. (as helpany be dissolved.

hug military forces,

Dispite that judgment, it is said. its jurladtetion no

his judgment longer extends to that part of the power of the jurisdiction of the local then was) suit in

case, the the company still hins in fact a cor- courts in the area invaded, Article

704) in the former country but has been ousted by the 23 (h) of the Hague Regulations, branch of such a

rete existence and is carrying on Lporate corporation

therefore Chefco, and fact of such occupation.

business in 1907, states that it is specially pro- nothing but "a submerged wreck there is no ground on which the He contends that, once it is admitted ibited to an invader "to declare floating on the ocean of commerce." branch of the company in Hongkong (as here) that part of a country has extinguished, suspended or unenforce It is true that in each of those been efftelively occupied by an able in a Court of law the rights and

can be wound up under section 313 cases the Russian corporation con-

1032 (No. 30). ence and was completely inanimate, whereas here rome of the activities

enemy, the area becomes subject to rights of action of the nationals ni cerned had been swept out of exist=(1) (b) of the Companies Ordlangice.

run

that enemy and the jurisdiction of the adverse party." Be country's Courts ceases to

Right Of Action therein.

Authorities Quoted

It is admitted here that on the Japanese occupation of Shantung the

persons who

are

whose existence is not terminated by character. They have failed to dis ""But this change of sovereignty may the death of the foreign corporation but charge that onus and failed altogether be only of a temporary character. for the

continues for the purpose of wiming to show that a corporation cannot be conquered territory may be reenatured its affairs so far as this country has dissolved at any time in the courts of by the former owner or It may be control over the persons and the ́ablets restored to him by`n treaty of peace. within its jurisdiction."

the country of its Incorporation. During mere military cccupation the (per Lord Wrenbay. In Russian Com- There

In addition coullable sovereignty of the conqueror is unstable

mercial and Industrial Bank D. grounds on which the branch in and Incomplete. Ilence the allegiance of the inhabitants of the territory so Comptoir d' Escompte de Mulhouse, Blangkong may be wound up. occupied is a temporary and qualified | (1926) A.C., nt page 148).

In my view this appeal must be allegiance which brerines complete only

Its corporate powers, if not its dismissed with costs. on the confirmation of the canquest and

would have with the express or implied consent of corporate existente, the conquered,"

Modern Viows

In support of this contention he has District Court of Cheft) ceased to the fact still remains that the exintis perfectly entitled to trade with freely quoted to us, consider that an

ぐ引きが良

Court.

such

Japan.

branch as able to carry on a separate car. existence, it is obvious that existence could only be maintained

Company's Position

The position of the company

of other countries,"

been destroyed in its country of NEW U.S. LEGAL

izzin" (per Maugham, J., in Russian

| Barik for Foreign Trade, (1083) ↑ Ch.

745, of page 704).

"Not Just & Equitablo"

APPOINTMENTS

ADVICE TO NURSING MOTHERS

It is said by counsel for the appel-

White the modern text-back whose works have been of the company are, admittedly still lants that in the contemplation of n being encried on in norths China, but neutral (Britain) court the company writers,

invader has for the time being

It is further contended that it is WASHINGTOON, Jon, 4 (Reuter), cited passages from various authorita-function, but that could not deprive ence of the company as a furistic

obsolute authority in occupied terribot just and equitable that the com- Mr. Francis Biddle, at present a Judge For some purposes, indeed, it seems tive works en International Law,

In the Circuit Court of Appeals, has their right of person has been destroyed by

ary, nowhere do they suggest that the Pany be wound up. It is sought to the the respondents In paragraph 155, page 559 of his

Chungking District that the company has acquired enemy

rights of the invader enable him to istify the act of the company in been nominated Solicitor-General. Cheloo is in the actual Treatise (8th Edition) full puts the action in the District Court of Chung-order of the

destruction

the character.

Mr. Frank Murphy replaces Judge do more than the military altuation making a contract of agency, which king which had been given speelal Poal and with ita

of the Japanese forces. cose thus,......

equires. And they clearly show that Zorbidden and penal by the law of Pleree Bitler, who died in November, "An invader has the right of

jurisdiction to deal with Shantung Hongkong Branch, which must de-seson

Chefoo pierference with the civil adminis- Chino, on the ground that the place, on the Supreme Court. [perly of ine company in

He is the President's fifth nominee" exercising such control, and such matters. Indeed the appellants them-nend for its legal being on the con- The produce of Chiefoo and the pro-

existence of the company, would be regarded by the Chinese tration of occupied territory is Umit- the country, where the company

2d to military necessity.

carries on business is now occupied to the nine-men Court, control only, within the occupied selves seem to have recognised that tinued

as enemy property and so liable to

But milliary territory, as is required for his Chinese law had not censed to run cannot be deemed to be still alive.

necessity

the Japanese, cannot by

The authority seizure. The nationality of the safety and the success of his opern-in Chefoo and Shantung since they

Appeal Dismissed

occupied territory of Shantung ns Justify the voluntary nets of private under which it is said that the com- pany has appointed the Dalren Kisen tions. But the measure and range appealed to the First Divisional Court

Even were it possible to regard the regards property is no doubi Japan- persons, and so cannot warrant the Knisha its agents in relation to the refusal by the members of this com-assels of the company now in Hong- of military necessity in particular of Szechuan (nt Chungking) against cases can only be determined by the order of the Chungking District

pany to obey the lawful order of a the circumstances of those

Chinese court.

kong is as follows: We cannot nesume It in consequently Impossible

Even if effective military occupa

without any evidence that the Japan-

"Appointment" tion were indistinguishable from "do

ese authorities have Interfered, or formally to exclude any of the sub-facto" sovereignty, there is the clear- either by exposing the company's analogous to that to which res

I the undersigned do hereby ap- jects of legistative or administra-est possible authority for the

ships to the risk of almost certain Lindley in Janson v. Driefontein would interfers in keep this com-point The Dairen Kisen Kaisha as tive section from the sphere of position that it is not for an Enentzurn by an enemy power or by Consolidated Mines, Limited, (1002)

y alive in spite of itself or against agent with the following powers: --- control which is exercised in virtuo

the will of 118 members, or that those With regard to the six steamers It is very important, doctors of it; and the rights acquired by an Court to declare that a state of "de permitting the affairs of the branch A.C., at page 505, was referring whers

authorities would do anything to Sheng Lee', 'Mao Leo', "An Lee', 'Eng Eny, not to overlax your system invader in effect amount to all ul facto" sovereignty exists or existed at to be managed by an enemy cor-ho said:

"When war broke out the company?

prevent the members of the company Lee", "lan Lee' and 'Feng Lee now timate legislative and executive any given time, unless it has received parallen. It is this feature, part

becamp an nilen enemy of this country

Immediately after the birth of a although almost all its shareholders resorting to the Chinese court, as lying in Hongkong, the Agent's arm power. On occupying a country an authoritative communication to from the fact that we are here deal-

were resident elsewhere and subjects they have in fact done here. This is is to do all the affairs which

child. When you are feeding. invader at once invents himself with that effect from one of His Majesty's ing with a branch and not with the

strictly in accordance with Articlo necessary. Commenting on this statement in XXIII (h) of The Hague Regula-

baby yourself, you should take absolute authority: and the fact of Principal Secretaries' of State (or in parent.corporation itself, that makes

Dated the 20th day of 1st month in occupation draws with it as of Crown Colony from the Colonial the case clearly distinguishable frem,

Assembly Porter v. Freudenberg, (1816) 1 K.Bons, which declares that it

plenty of easily digested nourish- Mddlesborough

is the 14th year of Chiủ Wo (20th Janu- course the substitution of his will Secretary). Recognition of "de facto" In re

ment. Jary 1930), Company (14 Ch. p. 104) 857, at page 808, Lord Reading, Cesnecially forbidden- lawal sovereignty is an act of State, and Rooms for previously existing

Dairon, Kanbu-Dori, 30.

that For

doctors reason, wherover such substitution is rent is only when such coverolgnty is which is relied on by the appellants,

"Lord Lindity's statement was not

Ching Kee Steam Navigation Co., throughout China recommend sonably needed, and also the re-recognised by His Majesty the King There the company had ausrended

intended to be and is not, exhaustive. as head of the State that his Courts is netiuitles for considerable

Letel His Lordship, for the purposes of the placement of the netun civil will give effect to the legal rights that period in the hope of the return of

appeal then before the flause of Lorde,

Signed and Chopped: Chang Pen

Horlicks. They have proved that Judicial administration by militory

was considering the character of a trade

Chin, President," nrise from the establishment therept. better times and a disgruntled share-

Horlicks stimulates the appetite, jurisdiction'.'

ins corporation and did not purport to deal with persona residing but not

promotes sound sleep and Again in paragraph 150, page 601-In case of doubt a Court can apply to holder petitioned for its winding-up

carrying on #business in the enemy "He (the invader) cuspends the opera Secretary of State for the necessary which was opposed by a consider- share-

territory. Such a person is equally ation of the laws under which they Information. See the Bank of Ethio-able majority of the other

treated as an allen snemy, provided he

furadiction of the conquernig state is Banca de Bilbao cases holders, and in such circumstances

tyoruntarity realdent there, having

considered in international law as ex= |

aro. (the inhabitants) owe allegiance to Pin und

the Court of Appeal held, that the inets to live under the protection of (supra).

-tending over the conquered territory Argument has proceeded on the their legitimate ruler" and in para-

during entitiary occupation." Here there can þa, 'no possible wishes of the majority, the safety of the enemy state. For the purpose of

assumption not that the parties in graph 187, page 586 "It has been

autorming civil rights, a British sub-

The position is put comprehensive coming to that arrangement intended the duly recognised the assets and the ability of seen, that the authority of the local doubt

jeet, or the subject of a neutral slate, wito la voluntarily resident or who isly by Oppenheim (8th edition), stany law alter than the law of China civil and Judicial administration sovereignty de facto and de Jure over company to resume business at any

carrying on business in homille territory page 340m suspended as of course so soon as the Province of Shantung Iles in the time were decisive reasons against

is to be regarded, and treated, as an allen

to apply, but that, because to centra The administration of the occupant of administration of the company is enemy and if in the same position as Government of the Republic of, allowing it to be wound up.

is in no wis to be compared with occupation takes place."

Here, although the appellants holdbject of holle nationally resident

ordinary administration, for If I da, now in Statements to a similar effect ap- China, and it follows that this Court,

hostile territory.”

hands, the company ffactly and precisiv military, adminu», could therefore do as It liked regard pear in Oppenheim's Treation (all cannot consider the possibility

And in The Asturian, (1910), P., of many more shares than do the res-

tration. Edition) Volume II at pages 345 and any other sovereignty boing. exer, pondents, the business of the branch per Sir Samuel Evans, on page 153, Pazo 345-

less of Chinese law. 950, and in Halleck's International elsed or of the curtailment of any of cannot possibly be carried on except we had the statement

The only addiuen to the argument principle underlying to the jeopardy of the næseta, or.

modern Law Volume II at paros 440, 462 and China's rights therein.

rules "la", that, although the

these on this point which was not before Existenco Torminated

occupant in no wish acquires sovereignty the learned Chief Justice is that the else under the control of Japancre

Over ruch territory through the mere principle enunciated by Lord Hats- fact of having, occipled ft. he setually bury in In re Missouri Steamship exercises for lar time being, a milliary, Company, 42 Ch.D. at page 330, and Alfority over (L* Aml page 350-

469.

that the

n

Bald:-

The simple fact upon which the decision of the court depends is that the goods claimed wore the produce of Those authoritative statements It follows also that the Court is agents whose appointment as auch

In an enemy country.” taken by themselves undoubtedly) bound to treat the sets of the Courts! was not only vold but illegal und land owned or held by the claimanta, lend some colour to the view that of the Sovereign Republic of China, the law of China.

Incorporated In China at the time when the winding-up no acts which cannot be impugned For these reasons and for the ren! The Chinese courts however were order was made by the District Court and to hold the order of the Chung-1 mens given in the Judgment of the dealing, not with the pronajty of thin of Chungking the administration of king District Court, confirmed ns-it Court below I am antisfied, company-In Stuntung, but with its Justice in the province of Shantung, was on appent by the First Divi- that the winding-up order herein incorporation In China. It has not

"a declare, abolished, suspended or in- admissible in a court of law. the private claims of resortiments of the hottile party,"

In Halleck, at page 440, we find the statement, with regard to the suspension of political but not muni-

lent laws, thes

We are not told what the terms of the

he arrangement between the com-

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approved in The Tornt, (1932), P.27, The Eiritish und American Interpreta was not affected by the deklafón in tom of Article xxii (ii) of The Hague Regulations that is prohibits An occupant of enemy territory, from 'de

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