RE DAYS INTERNATIONAL LTD

RE DAYS INTERNATIONAL LTD

The court ordered production of Oscoda's monthly bank statements for Jan 2004–Dec 2011 because the Liquidators reasonably required them and, on a common‑sense commercial view of the fraud, those records related to the Company as part of the circulation of misapplied funds; unrelated material is to be excluded by agreed protocol or by further directions.

Citation
RE DAYS INTERNATIONAL LTD
Parties
Company (subject); Applicant by Liquidators: Days International Limited; Respondent (bank): Bank of East Asia Limited; Third Party / Related Company: Oscoda Electronics Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
11 March 2016
Case Number
HCCW299/2011
Procedural Posture
Companies (winding Up) Production Summons Under S221(3) / Chambers Hearing and Decision (hearing 25 February 2016; Decision 11 March 2016)
Outcome
Order granted
Legal Topics
Production of Documents, S221(3) Companies (winding Up) Ordinance, Liquidators' Investigatory Powers, Tracing of Fraudulently Diverted Funds
Source Language
EN
Company Law Insolvency Law Banking Law Civil Procedure Production of Documents S221(3) Companies (winding Up) Ordinance Liquidators' Investigatory Powers Tracing of Fraudulently Diverted Funds

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Parties

Days International Limited

Company (subject); Applicant by Liquidators

Bank of East Asia Limited

Respondent (bank)

Oscoda Electronics Limited

Third Party / Related Company

Procedural Posture

Companies (winding Up) Production Summons Under S221(3) / Chambers Hearing and Decision (hearing 25 February 2016; Decision 11 March 2016)

Legal Issues

  1. 1 Whether bank must produce a third party's bank statements under s221(3)
  2. 2 Whether documents of Oscoda 'relate to the company' for purposes of s221(3)
  3. 3 Whether a protocol is required to exclude documents unrelated to the company

Ratio Decidendi

The court ordered production of Oscoda's monthly bank statements for Jan 2004–Dec 2011 because the Liquidators reasonably required them and, on a common‑sense commercial view of the fraud, those records related to the Company as part of the circulation of misapplied funds; unrelated material is to be excluded by agreed protocol or by further directions.

Court Disposition

Order granted

Orders

  • Bank of East Asia Limited to produce monthly account statements of all Oscoda Electronics Limited accounts for Jan 2004 to Dec 2011 in its possession custody and control
  • Liquidators and the Bank to agree a protocol to exclude unrelated documents and information or, failing agreement, to refer the protocol to the court in writing