RE MEI CHEONG IEONG HONG (H.K.) LTD.

RE MEI CHEONG IEONG HONG (H.K.) LTD.

The petitioners, constituting the vast majority by value, held an admitted undisputed debt; no exceptional or persuasive evidence was produced to justify exercising the court's discretion under s.287 to refuse or stay the winding-up petition; accordingly a compulsory winding-up order was required and was made.

Citation
RE MEI CHEONG IEONG HONG (H.K.) LTD.
Parties
Petitioner/creditor: Standard Chartered Bank; Petitioner/creditor: Jade Riches Investment Limited; Petitioner/creditor: Union Bank of Hong Kong Limited; Petitioner/creditor: The Bank of East Asia Limited; Petitioner/agent of Syndicate: Standard Chartered Asia Limited; Company/respondent: Mei Cheong Ieong Hong (H.K.) Limited; Opposing Contributory/shareholder: Silverdew Development Limited; Creditor/opposing: Mei Cheong Trading Ltd.; Creditor/opposing: Mei Cheong Construction Co. Ltd.
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
8 November 1999
Case Number
HCCW375/1999
Procedural Posture
Winding Up Petition (companies Ordinance) / Judgment Following Hearing (order Made)
Outcome
Compulsory winding-up order made against Mei Cheong Ieong Hong (H.K.) Limited
Legal Topics
Winding Up, Creditors' Petition, Court Discretion Under S.287, Provisional Liquidators, Debt Enforcement
Source Language
EN
Company Law Insolvency Banking and Finance Winding Up Creditors' Petition Court Discretion Under S.287 Provisional Liquidators Debt Enforcement

Case Brief

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Parties

Standard Chartered Bank

Petitioner/creditor

Jade Riches Investment Limited

Petitioner/creditor

Union Bank of Hong Kong Limited

Petitioner/creditor

The Bank of East Asia Limited

Petitioner/creditor

Standard Chartered Asia Limited

Petitioner/agent of Syndicate

Mei Cheong Ieong Hong (H.K.) Limited

Company/respondent

Silverdew Development Limited

Opposing Contributory/shareholder

Mei Cheong Trading Ltd.

Creditor/opposing

Mei Cheong Construction Co. Ltd.

Creditor/opposing

Procedural Posture

Winding Up Petition (companies Ordinance) / Judgment Following Hearing (order Made)

Legal Issues

  1. 1 Whether a compulsory winding-up order should be made where debt is admitted
  2. 2 Whether the court should exercise discretion under s.287 to refuse or stay a winding-up petition despite creditor opposition
  3. 3 Whether the company can realistically trade out of insolvency given disputes with joint venture partner and nature of asset

Ratio Decidendi

The petitioners, constituting the vast majority by value, held an admitted undisputed debt; no exceptional or persuasive evidence was produced to justify exercising the court's discretion under s.287 to refuse or stay the winding-up petition; accordingly a compulsory winding-up order was required and was made.

Court Disposition

Compulsory winding-up order made against Mei Cheong Ieong Hong (H.K.) Limited

Orders

  • Make compulsory winding-up order against Mei Cheong Ieong Hong (H.K.) Limited