JOHN ROBERT LEES AND ANOTHER v. TAN LAM CHUAN

JOHN ROBERT LEES AND ANOTHER v. TAN LAM CHUAN

In the absence of a stay the court will require compliance with an existing Payment Order; accordingly the liquidators were ordered to authorize the Official Receiver to pay HK$472,000 to Ng & Partners out of the company liquidation account within 14 days, leave was granted (if required) to the liquidators to apply...

Source-derived case information.

Citation
JOHN ROBERT LEES AND ANOTHER v. TAN LAM CHUAN
Parties
Joint and Several Liquidator of Promail International (hk) Limited (in Liquidation) Applicant: John Robert Lees; Joint and Several Liquidator of Promail International (hk) Limited (in Liquidation) Applicant: Desmond Chung Seng Chiong; Respondent Director and Shareholder of the Company: Tan Lam Chuan
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
29 April 2005
Case Number
HCCW373/2002
Procedural Posture
Companies (winding Up) No. 373 of 2002 / Summons for Directions Following Variation and Discharge of Restraint Order; Interlocutory Hearing
Outcome
Summons for directions granted in part; liquidators ordered to comply with Payment Order; leave to seek out of time appeal permitted if required; costs orders made
Legal Topics
Restraint Order Variation, Payment Order, Duties of Liquidators, Costs (common Fund Basis), Leave to Appeal Under Companies Ordinance
Source Language
en
Company Law Insolvency Law Criminal Procedure (restraint Orders) Civil Procedure Restraint Order Variation Payment Order Duties of Liquidators Costs (common Fund Basis) +1 more

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Parties

John Robert Lees

Joint and Several Liquidator of Promail International (hk) Limited (in Liquidation) Applicant

Desmond Chung Seng Chiong

Joint and Several Liquidator of Promail International (hk) Limited (in Liquidation) Applicant

Tan Lam Chuan

Respondent Director and Shareholder of the Company

Procedural Posture

Companies (winding Up) No. 373 of 2002 / Summons for Directions Following Variation and Discharge of Restraint Order; Interlocutory Hearing

Legal Issues

  1. 1 Whether funds of a company in liquidation may be applied to pay legal costs of a shareholder
  2. 2 Whether liquidators are obliged to preserve funds to satisfy a court payment order made prior to their control of the accounts
  3. 3 Whether leave under section 186 Companies Ordinance (Cap. 32) was required or could be granted out of time

Ratio Decidendi

In the absence of a stay the court will require compliance with an existing Payment Order; accordingly the liquidators were ordered to authorize the Official Receiver to pay HK$472,000 to Ng & Partners out of the company liquidation account within 14 days, leave was granted (if required) to the liquidators to apply for leave to appeal out of time under section 186 Cap.32, and costs were ordered to be paid out of the company assets (Ng & Partners' costs taxed on a common fund basis).

Court Disposition

Summons for directions granted in part; liquidators ordered to comply with Payment Order; leave to seek out of time appeal permitted if required; costs orders made

Orders

  • Liquidators to authorize the Official Receiver to pay HK$472,000.00 to Ng & Partners out of the company's liquidation account within 14 days in compliance with Gall J's Payment Order dated 25 February 2005.
  • Leave, if required, under section 186 of Cap. 32 granted to the liquidators to apply for leave to appeal against the Payment Order out of time and to pursue such appeal if leave is granted.