RE CASANOSTRA LTD

RE CASANOSTRA LTD

The court made a compulsory winding-up order because the statutory demand was not complied with, the company failed to show a bona fide dispute on substantial grounds, evidence (including default judgment against Italtrade and unpaid sums under a consent order) established the company was unable to pay its debts under the proper insolvency test, and the managing director validly executed the guarantee; the application for a stay of advertisement was refused as inappropriate.

Citation
RE CASANOSTRA LTD
Parties
Petitioner: First Pacific Bank (formerly Hong Nin Bank Limited); Company/respondent: Casanostra Limited; Official Receiver: Official Receiver; Related Party/principal Debtor: Italtrade Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
23 October 1989
Case Number
HCCW153/1988
Procedural Posture
Winding Up Petition Under the Companies Ordinance (cap 32) / Judgment at Hearing (winding Up Order Made)
Outcome
Compulsory winding-up order made against Casanostra Limited; costs to be paid out of the company's assets; application for stay/postponement refused.
Legal Topics
Winding Up, Statutory Demand, Guarantee Liability, Insolvency Test, Stay of Execution/appeal
Source Language
EN
Company Law Insolvency Contract Law Civil Procedure Winding Up Statutory Demand Guarantee Liability Insolvency Test +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 6 Authorities cited 6 Party arguments 2 Amounts and remedies 5
Sign in to unlock

Parties

First Pacific Bank (formerly Hong Nin Bank Limited)

Petitioner

Casanostra Limited

Company/respondent

Official Receiver

Official Receiver

Italtrade Limited

Related Party/principal Debtor

Procedural Posture

Winding Up Petition Under the Companies Ordinance (cap 32) / Judgment at Hearing (winding Up Order Made)

Legal Issues

  1. 1 Whether there is a bona fide dispute as to the existence of the debt under the guarantee
  2. 2 Whether the company neglected to pay the debt alleged
  3. 3 Whether winding up proceedings were inappropriate because petitioner could recover by ordinary action and execute judgment

Ratio Decidendi

The court made a compulsory winding-up order because the statutory demand was not complied with, the company failed to show a bona fide dispute on substantial grounds, evidence (including default judgment against Italtrade and unpaid sums under a consent order) established the company was unable to pay its debts under the proper insolvency test, and the managing director validly executed the guarantee; the application for a stay of advertisement was refused as inappropriate.

Court Disposition

Compulsory winding-up order made against Casanostra Limited; costs to be paid out of the company's assets; application for stay/postponement refused.

Orders

  • Make compulsory winding-up order for Casanostra Limited
  • Costs to be paid out of the assets of the company