RE GOLDCONE PROPERTIES LTD.

RE GOLDCONE PROPERTIES LTD.

The court exercised its discretion and concluded this was not an ordinary case: because the opposition was by insider creditors acting in narrow self-interest and caused substantially increased costs that could have been avoided, the opposing creditors must bear the petitioning creditor's costs incurred after presentation of the petition; no order was made for the opposing creditor's costs of appearance and liquidators sought no costs.

Citation
RE GOLDCONE PROPERTIES LTD.
Parties
Petitioner: Petitioning Creditor; Opposing Creditor: Opposing Creditor; Company (in Creditors Voluntary Liquidation): Goldcone Properties Limited; Joint & Several Liquidators: John Lees and Desmond Chiong; Official Receiver: Official Receiver
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
5 November 1999
Case Number
HCCW391/1999
Procedural Posture
Companies Winding Up (companies Ordinance, Cap. 32) / Costs Hearing Following Judgment on Winding Up Petition
Outcome
Opposing creditor ordered to bear petitioning creditor's costs incurred after presentation of the petition; no order for opposing creditor's costs of appearance; liquidators and Official Receiver costs dealt with as stated.
Legal Topics
Winding Up, Costs Orders, Liquidators, Opposing Creditor Conduct
Source Language
EN
Company Law Insolvency Civil Procedure Winding Up Costs Orders Liquidators Opposing Creditor Conduct

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 3 Authorities cited 4 Party arguments 2
Sign in to unlock

Parties

Petitioning Creditor

Petitioner

Opposing Creditor

Opposing Creditor

Goldcone Properties Limited

Company (in Creditors Voluntary Liquidation)

John Lees and Desmond Chiong

Joint & Several Liquidators

Official Receiver

Official Receiver

Procedural Posture

Companies Winding Up (companies Ordinance, Cap. 32) / Costs Hearing Following Judgment on Winding Up Petition

Legal Issues

  1. 1 Whether the petitioning creditor's costs should be paid out of the estate or by the opposing creditor
  2. 2 Whether the opposing creditor's conduct takes the case outside the ordinary rule on costs in winding-up proceedings
  3. 3 Whether only part of the costs should be borne by the opposing creditor given the timing of knowledge of facts

Ratio Decidendi

The court exercised its discretion and concluded this was not an ordinary case: because the opposition was by insider creditors acting in narrow self-interest and caused substantially increased costs that could have been avoided, the opposing creditors must bear the petitioning creditor's costs incurred after presentation of the petition; no order was made for the opposing creditor's costs of appearance and liquidators sought no costs.

Court Disposition

Opposing creditor ordered to bear petitioning creditor's costs incurred after presentation of the petition; no order for opposing creditor's costs of appearance; liquidators and Official Receiver costs dealt with as stated.

Orders

  • Costs of the petitioning creditor after the date of the presentation of the petition to be borne by the opposing creditor.
  • No order as to costs in respect of the opposing creditor's appearance at the hearing.