IMAGE TECHNOLOGY (HONG KONG) LTD AND OTHERS v. HO YING CHEONG AND OTHERS

IMAGE TECHNOLOGY (HONG KONG) LTD AND OTHERS v. HO YING CHEONG AND OTHERS

The Official Receiver must bear the costs reserved by Deputy Judge Peard because the application to vest monies lacked a legal basis under s.198 of the Companies Ordinance, was procedurally misconceived and abandoned; the appropriate scale is common fund costs rather than indemnity, and those costs are payable to the 1st Defendant.

Citation
IMAGE TECHNOLOGY (HONG KONG) LTD AND OTHERS v. HO YING CHEONG AND OTHERS
Parties
Applicant; 1st Plaintiff: IMAGE TECHNOLOGY (HONG KONG) LIMITED (IN LIQUIDATION); 2nd Plaintiff: QINGYUAN REAL ESTATE DEVELOP GENERAL COMPANY; 3rd Plaintiff: PHOTO SUPPLY CORPORATION; 4th Plaintiff: QINGYUAN 3K PHOTOGRAPHIC TECHNOLOGY CORPORATION; 1st Plaintiff (related Action): THE BEIJING TRUST INVESTMENT CORPORATION OF THE PEOPLE'S CONSTRUCTION BANK OF CHINA; 2nd Plaintiff (related Action): ZHONG MAN ELECTRONIC SYSTEM CORPORATION; 3rd Plaintiff (related Action): BEIJING SUNNY STEREOSCOPIC PHOTOGRAPHY TECHNOLOGY CO. LTD.; 1st Defendant; 1st Respondent: HO YING CHEONG; 2nd Defendant; 2nd Respondent: HO CHING CHEONG INVESTMENT CO. LTD.; 3rd Defendant; 3rd Respondent: HO CHING CHEONG INTERNATIONAL CO. LTD.
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
5 November 1996
Case Number
HCCW342/1993
Procedural Posture
Companies Winding Up and Ancillary Civil Proceedings (costs Application) / Chambers Judgment on Costs Reserved by Deputy Judge (decision on Liability and Scale of Costs)
Outcome
Costs of the three sets of proceedings reserved by Deputy Judge Peard and of the hearing on 5 November 1996 are to be borne by the Official Receiver and paid to the 1st Defendant; costs to be assessed on a common fund basis.
Legal Topics
Official Receiver Liability, Vesting of Company Property, Scale of Costs (indemnity V Common Fund), Procedural Irregularity, Abandoned Proceedings
Source Language
EN
Company Law Insolvency Civil Procedure Costs Official Receiver Liability Vesting of Company Property Scale of Costs (indemnity V Common Fund) Procedural Irregularity +1 more

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Parties

IMAGE TECHNOLOGY (HONG KONG) LIMITED (IN LIQUIDATION)

Applicant; 1st Plaintiff

QINGYUAN REAL ESTATE DEVELOP GENERAL COMPANY

2nd Plaintiff

PHOTO SUPPLY CORPORATION

3rd Plaintiff

QINGYUAN 3K PHOTOGRAPHIC TECHNOLOGY CORPORATION

4th Plaintiff

THE BEIJING TRUST INVESTMENT CORPORATION OF THE PEOPLE'S CONSTRUCTION BANK OF CHINA

1st Plaintiff (related Action)

ZHONG MAN ELECTRONIC SYSTEM CORPORATION

2nd Plaintiff (related Action)

BEIJING SUNNY STEREOSCOPIC PHOTOGRAPHY TECHNOLOGY CO. LTD.

3rd Plaintiff (related Action)

HO YING CHEONG

1st Defendant; 1st Respondent

HO CHING CHEONG INVESTMENT CO. LTD.

2nd Defendant; 2nd Respondent

HO CHING CHEONG INTERNATIONAL CO. LTD.

3rd Defendant; 3rd Respondent

Procedural Posture

Companies Winding Up and Ancillary Civil Proceedings (costs Application) / Chambers Judgment on Costs Reserved by Deputy Judge (decision on Liability and Scale of Costs)

Legal Issues

  1. 1 Whether the Official Receiver should bear the costs reserved by Deputy Judge Peard
  2. 2 Whether the Official Receiver could be ordered personally liable for costs if company assets are insufficient
  3. 3 Whether the Company retained any proprietary interest in money lodged in court such as to justify vesting

Ratio Decidendi

The Official Receiver must bear the costs reserved by Deputy Judge Peard because the application to vest monies lacked a legal basis under s.198 of the Companies Ordinance, was procedurally misconceived and abandoned; the appropriate scale is common fund costs rather than indemnity, and those costs are payable to the 1st Defendant.

Court Disposition

Costs of the three sets of proceedings reserved by Deputy Judge Peard and of the hearing on 5 November 1996 are to be borne by the Official Receiver and paid to the 1st Defendant; costs to be assessed on a common fund basis.

Orders

  • The costs of the three sets of proceedings reserved by Deputy Judge Peard and of today are to be borne by the Official Receiver and paid to the 1st Defendant.
  • Costs to be assessed on a common fund basis.