RE PEREGRINE INVESTMENTS HOLDINGS LTD.

RE PEREGRINE INVESTMENTS HOLDINGS LTD.

The court held that provisional liquidators appointed under section 193 who continue in office after a winding up order remain subject to the court's control for remuneration for the entirety of their term and that the committee of inspection has no authority under section 196(2) to determine their remuneration for the post‑Order period; consequently payments released pursuant to the Official Receiver's Circular and taxations procured under a mistaken view of the law are voidable and are set aside.

Citation
RE PEREGRINE INVESTMENTS HOLDINGS LTD.
Parties
Applicants (provisional Liquidators): Provisional Liquidators of Peregrine Investments Holdings Limited, Peregrine Derivatives Limited and Peregrine Fixed Income Limited; Company in Liquidation: Peregrine Investments Holdings Limited; Company in Liquidation: Peregrine Derivatives Limited; Company in Liquidation: Peregrine Fixed Income Limited; Respondent (official Receiver): Official Receiver
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
27 May 1999
Case Number
HCCW22/1998
Procedural Posture
Companies Winding Up / Renewed Application for Interim Payment of Provisional Liquidators' Fees and Related Directions (chambers Decision)
Outcome
Application for further interim payment refused; prior payments and related taxations set aside; directions issued for treatment of post‑Order fees and disbursements; Office Circulars held ultra vires and of no effect to validate payments
Legal Topics
Provisional Liquidator Remuneration, Committee of Inspection Powers, Official Receiver Office Circulars Ultra Vires, Taxation of Disbursements, Court's Inherent Jurisdiction
Source Language
EN
Insolvency Law Administrative Law Civil Procedure Provisional Liquidator Remuneration Committee of Inspection Powers Official Receiver Office Circulars Ultra Vires Taxation of Disbursements Court's Inherent Jurisdiction

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Parties

Provisional Liquidators of Peregrine Investments Holdings Limited, Peregrine Derivatives Limited and Peregrine Fixed Income Limited

Applicants (provisional Liquidators)

Peregrine Investments Holdings Limited

Company in Liquidation

Peregrine Derivatives Limited

Company in Liquidation

Peregrine Fixed Income Limited

Company in Liquidation

Official Receiver

Respondent (official Receiver)

Procedural Posture

Companies Winding Up / Renewed Application for Interim Payment of Provisional Liquidators' Fees and Related Directions (chambers Decision)

Legal Issues

  1. 1 Whether a provisional liquidator appointed under section 193 who continues in office after a winding up order is remunerated by the court or by the committee of inspection under section 196(2) for the post‑Order period
  2. 2 Whether Official Receiver Office Circular No.1/97 validating interim/on‑account payments is intra vires or ultra vires the Official Receiver's powers
  3. 3 Whether taxations of disbursements obtained pursuant to Rule 176 under the circumstances are voidable where procured under a mistake of law

Ratio Decidendi

The court held that provisional liquidators appointed under section 193 who continue in office after a winding up order remain subject to the court's control for remuneration for the entirety of their term and that the committee of inspection has no authority under section 196(2) to determine their remuneration for the post‑Order period; consequently payments released pursuant to the Official Receiver's Circular and taxations procured under a mistaken view of the law are voidable and are set aside.

Court Disposition

Application for further interim payment refused; prior payments and related taxations set aside; directions issued for treatment of post‑Order fees and disbursements; Office Circulars held ultra vires and of no effect to validate payments

Orders

  • Payments made pursuant to Official Receiver Office Circular No.1/97 and related taxations in respect of provisional liquidators' post‑winding up fees and disbursements are set aside and are voidable at the instance of the court
  • Directions in paragraph 1 of the Orders dated 23 November 1998 for the pre‑Order period shall apply, mutatis mutandis, to the fees of the Provisional Liquidators of PIHL, PDL and PFIL for the post‑Order period