RE SKY FINDER LTD.

RE SKY FINDER LTD.

Because the petitioner held an unsatisfied judgment debt and no stay of execution had been obtained, the company was insolvent on the evidence (only $5,000 asset) and its asserted cross-claims were unprosecuted and not relied on in the Hong Kong proceedings, the court was obliged to make a compulsory winding up order ex debito justitiae.

Citation
RE SKY FINDER LTD.
Parties
Petitioner: Core Resources (Far East) Ltd.; Company/respondent: Sky Finder Limited; Official Receiver: Official Receiver
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
17 February 1992
Case Number
HCCW402/1991
Procedural Posture
Companies (winding Up) / Final Judgment (winding Up Order Made)
Outcome
Compulsory winding up order granted in favour of the petitioner
Legal Topics
Winding Up, Insolvency, Judgment Debt, Stay of Execution, Cross Claims
Source Language
EN
Company Law Insolvency Civil Procedure Winding Up Judgment Debt Stay of Execution Cross Claims

Case Brief

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Parties

Core Resources (Far East) Ltd.

Petitioner

Sky Finder Limited

Company/respondent

Official Receiver

Official Receiver

Procedural Posture

Companies (winding Up) / Final Judgment (winding Up Order Made)

Legal Issues

  1. 1 Whether the company was insolvent and unable to pay its debts
  2. 2 Whether the court should exercise its discretion to refuse a winding up order because of alleged cross-claims to be pursued abroad
  3. 3 Whether an existing judgment debt without a stay of execution justifies a winding up order ex debito justitiae

Ratio Decidendi

Because the petitioner held an unsatisfied judgment debt and no stay of execution had been obtained, the company was insolvent on the evidence (only $5,000 asset) and its asserted cross-claims were unprosecuted and not relied on in the Hong Kong proceedings, the court was obliged to make a compulsory winding up order ex debito justitiae.

Court Disposition

Compulsory winding up order granted in favour of the petitioner

Orders

  • Compulsory winding up order made against Sky Finder Limited
  • Costs awarded to Core Resources (Far East) Ltd.