RE FORTUNE KING TRADING LTD (IN LIQUIDATION)

RE FORTUNE KING TRADING LTD (IN LIQUIDATION)

The court exercised its unfettered discretion and declined to grant the Trustees' proposed variations; it would not make a general no costs order nor the 50/50 split sought. The costs order nisi (costs to follow the event, Liquidators' costs to be paid by the Trustees and taxed if not agreed) is maintained in substance, with the specific modification that there be no order as to the costs of the submissions on costs.

Citation
[2020] HKCFI 591
Parties
Applicant (trustees in Bankruptcy): Trustees in Bankruptcy of Luu Hung Viet Derrick; Respondent (joint and Several Liquidators): Fortune King Trading Limited (In Liquidation)
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
16 April 2020
Case Number
HCCW432/2012
Procedural Posture
Companies (winding Up) Proceedings (costs Variation Application) / Costs Ruling on Variation of Costs Order Nisi
Outcome
Variation application dismissed; costs order nisi maintained with limited modification
Legal Topics
Costs Orders, Trustees' Indemnity and Personal Liability, Proof of Debt, Variation of Costs Order, Discretionary Costs Principles
Source Language
EN
Insolvency Company Law Civil Procedure Costs Costs Orders Trustees' Indemnity and Personal Liability Proof of Debt Variation of Costs Order +1 more

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Parties

Trustees in Bankruptcy of Luu Hung Viet Derrick

Applicant (trustees in Bankruptcy)

Fortune King Trading Limited (In Liquidation)

Respondent (joint and Several Liquidators)

Procedural Posture

Companies (winding Up) Proceedings (costs Variation Application) / Costs Ruling on Variation of Costs Order Nisi

Legal Issues

  1. 1 Whether trustees in bankruptcy should be protected from personal liability for costs when unsuccessful
  2. 2 Whether the general rule that costs follow the event should be displaced in this case
  3. 3 Whether the liquidators' stated reasons for rejecting the proof of debt are material to the costs decision

Ratio Decidendi

The court exercised its unfettered discretion and declined to grant the Trustees' proposed variations; it would not make a general no costs order nor the 50/50 split sought. The costs order nisi (costs to follow the event, Liquidators' costs to be paid by the Trustees and taxed if not agreed) is maintained in substance, with the specific modification that there be no order as to the costs of the submissions on costs.

Court Disposition

Variation application dismissed; costs order nisi maintained with limited modification

Orders

  • Variation of the costs order nisi refused
  • Costs order nisi (costs to follow the event; Liquidators' costs to be paid by the Trustees to be taxed if not agreed) to remain in effect