RE DIYON DEVELOPMENT LTD

RE DIYON DEVELOPMENT LTD

Judge found applicant had established a good prima facie case for a winding-up order based on evidence of payments under guarantees, but was not satisfied there was a real risk that the Company’s assets were in jeopardy or being dissipated; accordingly appointment of provisional liquidators was not justified and the application was dismissed with costs ordered against the applicant.

Citation
RE DIYON DEVELOPMENT LTD
Parties
Petitioner / Creditor: Kong Yick Ming; Respondent / Company: Diyon Development Limited; Contributory / Immediate Parent: Magician Investments (BVI) Ltd.; Official Receiver: Official Receiver
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
21 June 2006
Case Number
HCCW178/2006
Procedural Posture
Winding Up Petition and Summons for Appointment of Provisional Liquidators / Interlocutory Chambers Hearing on Summons for Provisional Liquidators (decision Delivered 21 June 2006)
Outcome
Application for appointment of provisional liquidators dismissed; costs awarded against the applicant
Legal Topics
Provisional Liquidators, Winding Up Petition, Asset Preservation, Inter Company Debts, Directors and Share Disputes, Costs
Source Language
EN
Company Law Insolvency Law Civil Procedure Provisional Liquidators Winding Up Petition Asset Preservation Inter Company Debts Directors and Share Disputes +1 more

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Parties

Kong Yick Ming

Petitioner / Creditor

Diyon Development Limited

Respondent / Company

Magician Investments (BVI) Ltd.

Contributory / Immediate Parent

Official Receiver

Official Receiver

Procedural Posture

Winding Up Petition and Summons for Appointment of Provisional Liquidators / Interlocutory Chambers Hearing on Summons for Provisional Liquidators (decision Delivered 21 June 2006)

Legal Issues

  1. 1 Whether applicant established a good prima facie case for a winding-up order
  2. 2 Whether appointing provisional liquidators was necessary to preserve assets and investigate alleged wrongdoing
  3. 3 Whether assets of the Company were at real risk of dissipation

Ratio Decidendi

Judge found applicant had established a good prima facie case for a winding-up order based on evidence of payments under guarantees, but was not satisfied there was a real risk that the Company’s assets were in jeopardy or being dissipated; accordingly appointment of provisional liquidators was not justified and the application was dismissed with costs ordered against the applicant.

Court Disposition

Application for appointment of provisional liquidators dismissed; costs awarded against the applicant

Orders

  • Application for provisional liquidators dismissed
  • Mr Kong to pay costs of the Company