LI SHU CHUNG v. HONG KONG PAK TAT TRADING CO

LI SHU CHUNG v. HONG KONG PAK TAT TRADING CO

The court found the petitioning creditor established a prima facie claim arising from the unpaid purchase price for Shenzhen Lianda shares and the Company failed to demonstrate a bona fide defence on substantial grounds; jurisdiction existed because the company was registered under Part XI, directors and petitioner resident in Hong Kong and assets could be realized by a Hong Kong liquidator; accordingly a winding-up order was made.

Citation
LI SHU CHUNG v. HONG KONG PAK TAT TRADING CO
Parties
Applicant/opposing Contributory: Li Shu Chung; Respondent/company Subject to Petition: Hong Kong Pak Tat Trading Company; Petitioner/creditor: Lee Sai Nam; Director/interested Party: Lee Shu Hang
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
1 December 2011
Case Number
HCMP1928/2011
Procedural Posture
Companies (winding Up) / Miscellaneous Proceedings Under Companies Ordinance (cap.32) / Hearing and Judgment (petition to Wind Up; Application for Leave to Intervene Heard; Judgment Delivered)
Outcome
Winding-up order granted against Hong Kong Pak Tat Trading Company; the application for leave to intervene rendered otiose by the outcome of the petition
Legal Topics
Winding Up, Statutory Demand, Jurisdiction to Wind Up Foreign Company Registered in Hong Kong (part Xi), Bona Fide Defence on Substantial Grounds, Leave to Intervene (s168 Bc), Share Transfer Dispute, Time Bar/limitation
Source Language
EN
Company Law Insolvency Law Civil Procedure Winding Up Statutory Demand Jurisdiction to Wind Up Foreign Company Registered in Hong Kong (part Xi) Bona Fide Defence on Substantial Grounds Leave to Intervene (s168 Bc) +2 more

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Parties

Li Shu Chung

Applicant/opposing Contributory

Hong Kong Pak Tat Trading Company

Respondent/company Subject to Petition

Lee Sai Nam

Petitioner/creditor

Lee Shu Hang

Director/interested Party

Procedural Posture

Companies (winding Up) / Miscellaneous Proceedings Under Companies Ordinance (cap.32) / Hearing and Judgment (petition to Wind Up; Application for Leave to Intervene Heard; Judgment Delivered)

Legal Issues

  1. 1 Whether the Hong Kong court had jurisdiction to wind up a Mauritius company registered under Part XI of the Companies Ordinance
  2. 2 Whether the Company has a bona fide defence on substantial grounds to the debt claimed by the petitioner
  3. 3 Whether the petitioner established a prima facie debt (statutory demand/judgment) sufficient to found a winding-up order

Ratio Decidendi

The court found the petitioning creditor established a prima facie claim arising from the unpaid purchase price for Shenzhen Lianda shares and the Company failed to demonstrate a bona fide defence on substantial grounds; jurisdiction existed because the company was registered under Part XI, directors and petitioner resident in Hong Kong and assets could be realized by a Hong Kong liquidator; accordingly a winding-up order was made.

Court Disposition

Winding-up order granted against Hong Kong Pak Tat Trading Company; the application for leave to intervene rendered otiose by the outcome of the petition

Orders

  • Winding-up order made against Hong Kong Pak Tat Trading Company (HCCW 236/2011)
  • Application for leave to intervene (HCMP 1928/2011) rendered otiose by the granting of the winding-up order