DARACH E. HAUGHEY AND JOSEPH KIN CHING LO, THE JOINT AND SEVERAL LIQUIDATORS OF WEIHONG PETROLEUM CO LTD (IN LIQUIDATION) v. LAI HONG SAN AND OTHERS

DARACH E. HAUGHEY AND JOSEPH KIN CHING LO, THE JOINT AND SEVERAL LIQUIDATORS OF WEIHONG PETROLEUM CO LTD (IN LIQUIDATION) v. LAI HONG SAN AND OTHERS

Although there was inordinate and inexcusable delay (a substantial portion post-CJR) the respondents failed to prove real prejudice or that the delay amounted to abuse of process; both parties bore responsibility for post-CJR delay and, in the overall interests of justice, the exercise of discretion to strike out was not justified; the summons to strike out was therefore dismissed.

Citation
DARACH E. HAUGHEY AND JOSEPH KIN CHING LO, THE JOINT AND SEVERAL LIQUIDATORS OF WEIHONG PETROLEUM CO LTD (IN LIQUIDATION) v. LAI HONG SAN AND OTHERS
Parties
Applicant Joint and Several Liquidator of Weihong Petroleum Company Limited (in Liquidation): Darach E. Haughey; Applicant Joint and Several Liquidator of Weihong Petroleum Company Limited (in Liquidation): Joseph Kin Ching Lo; 1st Respondent: Lai Hong San; 2nd Respondent: Yue Chun Shan; 3rd Respondent: Tong Chi Keung; 4th Respondent: Liu Ying Shing, Claudius; 5th Respondent: Weihong Investment (Holdings) Company Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
28 September 2012
Case Number
HCCW19/1998
Procedural Posture
Companies (winding Up) No. 19 of 1998 (section 276 Companies Ordinance) / Interlocutory Application to Strike Out for Want of Prosecution (heard in Chambers)
Outcome
Summons of the first and fifth respondents to strike out the action dismissed; order nisi that costs be in the cause
Legal Topics
Winding Up, Breach of Fiduciary Duty, Strike Out for Want of Prosecution, Abuse of Process, Section 221 Examination Transcripts, Civil Justice Reform Obligations
Source Language
EN
Company Law Insolvency Law Civil Procedure Winding Up Breach of Fiduciary Duty Strike Out for Want of Prosecution Abuse of Process Section 221 Examination Transcripts +1 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 6 Party arguments 2 Amounts and remedies 6
Sign in to unlock

Parties

Darach E. Haughey

Applicant Joint and Several Liquidator of Weihong Petroleum Company Limited (in Liquidation)

Joseph Kin Ching Lo

Applicant Joint and Several Liquidator of Weihong Petroleum Company Limited (in Liquidation)

Lai Hong San

1st Respondent

Yue Chun Shan

2nd Respondent

Tong Chi Keung

3rd Respondent

Liu Ying Shing, Claudius

4th Respondent

Weihong Investment (Holdings) Company Limited

5th Respondent

Procedural Posture

Companies (winding Up) No. 19 of 1998 (section 276 Companies Ordinance) / Interlocutory Application to Strike Out for Want of Prosecution (heard in Chambers)

Legal Issues

  1. 1 Whether delay in prosecution was inordinate and inexcusable
  2. 2 Whether defendants suffered real prejudice such that a fair trial is at substantial risk
  3. 3 Whether delay amounted to abuse of process warranting striking out

Ratio Decidendi

Although there was inordinate and inexcusable delay (a substantial portion post-CJR) the respondents failed to prove real prejudice or that the delay amounted to abuse of process; both parties bore responsibility for post-CJR delay and, in the overall interests of justice, the exercise of discretion to strike out was not justified; the summons to strike out was therefore dismissed.

Court Disposition

Summons of the first and fifth respondents to strike out the action dismissed; order nisi that costs be in the cause

Orders

  • Summons of the first and fifth respondents dismissed
  • Order nisi that costs be in the cause