NGAN SAM v. CHEER BEST ASIA INVESTMENT LTD AND OTHERS

NGAN SAM v. CHEER BEST ASIA INVESTMENT LTD AND OTHERS

Winding-up orders were granted and the petitioners' costs were ordered to be paid out of each company's assets because the respondents agreed to winding up, the petitioners obtained substantially the relief sought and there was no justification to defer the costs issue for mediation when petitioners did not consent to adjournment, in line with principles in Re Lucky Ford and Re Sino Pacific.

Citation
[2019] HKCFI 738
Parties
Petitioner (hccw 182/2018; HCCW 183/2018): Ngan Sam; Petitioner (hccw 184/2018): Ngan Winnie Suk Woon; Petitioner (hccw 185/2018): Ngan Sharon Shuk Tsz; 1st Respondent (hccw 182/2018): Cheer Best Asia Investment Limited; 1st Respondent (hccw 183/2018): Apex View Asia Limited; 1st Respondent (hccw 184/2018): Easy Loyal Limited; 1st Respondent (hccw 185/2018): Hing Luen Supermarket Limited; 2nd Respondent (hccw 182/2018): Ngan Yiu Chow; 3rd Respondent (hccw 182/2018; HCCW 183/2018; HCCW 184/2018): Ngan Jacky Shing Siu; 4th Respondent (hccw 182/2018; HCCW 183/2018; HCCW 184/2018) and 2nd Respondent (hccw 185/2018): Ngan Kelvin Shing Wai; 2nd Respondent (hccw 184/2018): Ngan Shing Yip; 3rd Respondent (hccw 185/2018): Chow Lai King; Absent: Official Receiver
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
8 March 2019
Case Number
HCCW182/2018
Procedural Posture
Companies Winding Up Proceedings (shareholder Disputes) / Decision on Winding Up Petitions and Costs (orders to Be Pronounced in Open Court on a Date to Be Fixed)
Outcome
Winding-up orders granted in each of the four matters; petitioners' costs of each petition to be paid out of the assets of the respective companies; orders to be pronounced in open court on a date to be fixed.
Legal Topics
Winding Up, Shareholder Dispute, Costs Orders, Mediation, Adjournment
Source Language
EN
Company Law Insolvency Law Civil Procedure Costs Winding Up Shareholder Dispute Costs Orders Mediation +1 more

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Parties

Ngan Sam

Petitioner (hccw 182/2018; HCCW 183/2018)

Ngan Winnie Suk Woon

Petitioner (hccw 184/2018)

Ngan Sharon Shuk Tsz

Petitioner (hccw 185/2018)

Cheer Best Asia Investment Limited

1st Respondent (hccw 182/2018)

Apex View Asia Limited

1st Respondent (hccw 183/2018)

Easy Loyal Limited

1st Respondent (hccw 184/2018)

Hing Luen Supermarket Limited

1st Respondent (hccw 185/2018)

Ngan Yiu Chow

2nd Respondent (hccw 182/2018)

Ngan Jacky Shing Siu

3rd Respondent (hccw 182/2018; HCCW 183/2018; HCCW 184/2018)

Ngan Kelvin Shing Wai

4th Respondent (hccw 182/2018; HCCW 183/2018; HCCW 184/2018) and 2nd Respondent (hccw 185/2018)

Ngan Shing Yip

2nd Respondent (hccw 184/2018)

Chow Lai King

3rd Respondent (hccw 185/2018)

Official Receiver

Absent

Procedural Posture

Companies Winding Up Proceedings (shareholder Disputes) / Decision on Winding Up Petitions and Costs (orders to Be Pronounced in Open Court on a Date to Be Fixed)

Legal Issues

  1. 1 Whether petitioners' costs should be paid out of company assets or by individual respondent shareholders
  2. 2 Whether the costs issue should be adjourned for mediation and dealt with alongside other disputes
  3. 3 Application of principles from Re Lucky Ford Industrial Ltd and Re Sino Pacific Corporation Ltd regarding costs when party obtains substantially the relief sought

Ratio Decidendi

Winding-up orders were granted and the petitioners' costs were ordered to be paid out of each company's assets because the respondents agreed to winding up, the petitioners obtained substantially the relief sought and there was no justification to defer the costs issue for mediation when petitioners did not consent to adjournment, in line with principles in Re Lucky Ford and Re Sino Pacific.

Court Disposition

Winding-up orders granted in each of the four matters; petitioners' costs of each petition to be paid out of the assets of the respective companies; orders to be pronounced in open court on a date to be fixed.

Orders

  • Winding-up order to be made in each of HCCW 182/2018, HCCW 183/2018, HCCW 184/2018 and HCCW 185/2018 (to be pronounced in open court on a date to be fixed)
  • The petitioners' costs of each of the four petitions are to be paid out of the assets of each of the respective companies.