RE MILAN ORNAMENT MANUFACTORY LTD.

RE MILAN ORNAMENT MANUFACTORY LTD.

The company failed to prove the alleged oral agreement; even if it existed it lacked consideration under Foakes v Beer and the company did not perform it in any event; therefore the judgment debt of $65,407.99 remained due and the company was unable to pay its debts, entitling the court to make a winding-up order.

Citation
RE MILAN ORNAMENT MANUFACTORY LTD.
Parties
Petitioner: Petitioning Creditor; Respondent Company: Milan Ornament Manufactory Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
25 October 2000
Case Number
HCCW970/1999
Procedural Posture
Companies Winding Up Petition (companies Ordinance) / Hearing and Judgment at Court of First Instance (winding Up Order Made)
Outcome
Winding-up order made against Milan Ornament Manufactory Limited
Legal Topics
Winding Up, Statutory Demand, Liquidated Debt, Part Payment and Consideration, Accord and Satisfaction, Default Judgment
Source Language
EN
Company Law Contract Law Civil Procedure Insolvency Law Winding Up Statutory Demand Liquidated Debt Part Payment and Consideration +2 more

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Parties

Petitioning Creditor

Petitioner

Milan Ornament Manufactory Limited

Respondent Company

Procedural Posture

Companies Winding Up Petition (companies Ordinance) / Hearing and Judgment at Court of First Instance (winding Up Order Made)

Legal Issues

  1. 1 Whether the petitioning creditor agreed to accept 2/3 of the debt in full and final settlement (oral agreement)
  2. 2 Whether any such agreement was legally binding (consideration/duress)
  3. 3 Whether performance of any agreement barred the winding-up petition

Ratio Decidendi

The company failed to prove the alleged oral agreement; even if it existed it lacked consideration under Foakes v Beer and the company did not perform it in any event; therefore the judgment debt of $65,407.99 remained due and the company was unable to pay its debts, entitling the court to make a winding-up order.

Court Disposition

Winding-up order made against Milan Ornament Manufactory Limited

Orders

  • The Company be wound up.
  • Costs to the Petitioning Creditor to be taxed.