RE ROCK RESOURCE LTD

RE ROCK RESOURCE LTD

Because the vast majority of the costs were incurred before the winding-up order and the liquidators, once appointed, examined the papers and elected not to adopt the petition, the court held those costs payable by the Petitioner to the Company but only as an unsecured debt; the court ordered the costs of the...

Source-derived case information.

Citation
RE ROCK RESOURCE LTD
Parties
Company: Rock Resource Limited; Petitioner (company in Liquidation): the Petitioner; Official Receiver: Official Receiver
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
14 August 2017
Case Number
HCCW149/2016
Procedural Posture
Companies Winding Up Proceedings / Post Winding Up Costs Hearing After Appointment of Liquidators
Outcome
Costs of the petition awarded to the Company but to be treated as an unsecured debt; costs of the hearing awarded to the Petitioner to be paid by the Company; Official Receiver's costs assessed and to be paid from the Petitioner's deposit.
Legal Topics
Priority of Costs in Liquidation, Winding Up Orders, Liquidators' Adoption of Proceedings, Assessment of Party and Official Receiver Costs
Source Language
en
Company Law Insolvency Civil Procedure Costs Priority of Costs in Liquidation Winding Up Orders Liquidators' Adoption of Proceedings Assessment of Party and Official Receiver Costs

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Parties

Rock Resource Limited

Company

the Petitioner

Petitioner (company in Liquidation)

Official Receiver

Official Receiver

Procedural Posture

Companies Winding Up Proceedings / Post Winding Up Costs Hearing After Appointment of Liquidators

Legal Issues

  1. 1 Whether costs incurred before a winding-up order can be given priority over liquidation debts
  2. 2 Whether a liquidator's decision not to adopt pre-winding proceedings prevents pre-winding costs being treated as costs of the liquidation
  3. 3 Who should bear the costs of the hearing before the court

Ratio Decidendi

Because the vast majority of the costs were incurred before the winding-up order and the liquidators, once appointed, examined the papers and elected not to adopt the petition, the court held those costs payable by the Petitioner to the Company but only as an unsecured debt; the court ordered the costs of the hearing before the judge to be paid by the Company to the Petitioner and assessed the Official Receiver's costs at HK$5,300 to be paid from the Petitioner's deposit.

Court Disposition

Costs of the petition awarded to the Company but to be treated as an unsecured debt; costs of the hearing awarded to the Petitioner to be paid by the Company; Official Receiver's costs assessed and to be paid from the Petitioner's deposit.

Orders

  • The costs of the petition are payable by the Petitioner to the Company and are provable as an unsecured debt.
  • The costs of the hearing before the Court are payable by the Company to the Petitioner.