Re Widecorp Development Ltd.

Re Widecorp Development Ltd.

The application for stay and for adjournment were refused and the winding-up order granted because although there was a not-frivolous dispute about the sale price and a pending action, that dispute did not extinguish the debt and the Company had no demonstrated financial ability to meet even the undisputed portion; therefore a dispute as to quantum was insufficient to prevent winding up.

Citation
Re Widecorp Development Ltd.
Parties
Petitioner: Kenny Finance Company Ltd; Respondent (company): Widecorp Development Limited; Official Receiver: The Official Receiver
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
23 November 2000
Case Number
HCCW387/2000
Procedural Posture
Companies Winding Up Petition / Judgment (petition Hearing)
Outcome
Winding-up order granted against Widecorp Development Limited; application for stay refused; application for adjournment refused; costs awarded to petitioner.
Legal Topics
Winding Up, Mortgagee's Duty of Sale, Stay of Proceedings, Quantum of Debt, Valuation Dispute
Source Language
EN
Company Law Insolvency Property Law Winding Up Mortgagee's Duty of Sale Stay of Proceedings Quantum of Debt Valuation Dispute

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 5 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

Kenny Finance Company Ltd

Petitioner

Widecorp Development Limited

Respondent (company)

The Official Receiver

Official Receiver

Procedural Posture

Companies Winding Up Petition / Judgment (petition Hearing)

Legal Issues

  1. 1 Whether the Company is unable to pay its debts
  2. 2 Whether the sale of charged land to a related purchaser was undervalued and in breach of the mortgagee's duty to obtain the best price
  3. 3 Whether a bona fide and substantial dispute as to quantum or a cross-claim requires a stay of the winding-up petition

Ratio Decidendi

The application for stay and for adjournment were refused and the winding-up order granted because although there was a not-frivolous dispute about the sale price and a pending action, that dispute did not extinguish the debt and the Company had no demonstrated financial ability to meet even the undisputed portion; therefore a dispute as to quantum was insufficient to prevent winding up.

Court Disposition

Winding-up order granted against Widecorp Development Limited; application for stay refused; application for adjournment refused; costs awarded to petitioner.

Orders

  • Winding-up order made against Widecorp Development Limited
  • Application for stay of the winding-up petition refused