RE B+B CONSTRUCTION CO. LTD.

RE B+B CONSTRUCTION CO. LTD.

Leave under s.186 was granted permitting the Applicant to continue the personal injuries action against B+B Construction Company Limited because the action was at an advanced stage, court determination of liability and quantum was more convenient and fair, and the insurers' correspondence sufficiently indicated...

Source-derived case information.

Citation
RE B+B CONSTRUCTION CO. LTD.
Parties
Applicant / Plaintiff (workman): Ip Yung Fei; Company / Defendant: B+B Construction Company Limited; Provisional Liquidators: Provisional Liquidators; Insurer: Tugu Insurance Company
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
28 June 2001
Case Number
HCCW114/2001
Procedural Posture
Companies Winding Up Application Under S.186 to Lift Stay on Pending Personal Injuries Proceedings / Application for Leave Under S.186 After Winding Up Order (winding Up Order Made 18 April 2001)
Outcome
Application granted in part: leave granted to proceed with personal injuries action subject to conditions
Legal Topics
Section 186 Companies Ordinance, Leave to Continue Proceedings During Liquidation, Proof of Debt Versus Continuation of Court Proceedings, Insurer's Liability and Indemnity, Third Parties (rights Against Insurers) Ordinance S2(1)(b)
Source Language
en
Company Law Insolvency Civil Procedure Personal Injury Insurance Law Section 186 Companies Ordinance Leave to Continue Proceedings During Liquidation Proof of Debt Versus Continuation of Court Proceedings +2 more

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Parties

Ip Yung Fei

Applicant / Plaintiff (workman)

B+B Construction Company Limited

Company / Defendant

Provisional Liquidators

Provisional Liquidators

Tugu Insurance Company

Insurer

Procedural Posture

Companies Winding Up Application Under S.186 to Lift Stay on Pending Personal Injuries Proceedings / Application for Leave Under S.186 After Winding Up Order (winding Up Order Made 18 April 2001)

Legal Issues

  1. 1 Whether leave under s.186 should be granted to permit personal injuries action to continue in High Court despite winding-up
  2. 2 Whether the insurers' correspondence constitutes sufficient assurance/indemnity to allow continuation
  3. 3 Whether the claim should instead be adjudicated by the Liquidators as a proof of debt

Ratio Decidendi

Leave under s.186 was granted permitting the Applicant to continue the personal injuries action against B+B Construction Company Limited because the action was at an advanced stage, court determination of liability and quantum was more convenient and fair, and the insurers' correspondence sufficiently indicated policy coverage so a formal indemnity was not necessary; leave was conditional that no judgment or order obtained against the Company be enforced without further leave of the court.

Court Disposition

Application granted in part: leave granted to proceed with personal injuries action subject to conditions

Orders

  • Notwithstanding the winding-up, Applicant has leave to proceed with HC Action No. PI 960 of 2000 against B+B Construction Company Limited
  • No judgment or order obtained by the Applicant in the action shall be enforced against the Company without the leave of the court