RE DIANOOR INTERNATIONAL LTD

RE DIANOOR INTERNATIONAL LTD

The court held that Aiyer and Wani acted on behalf of the companies pursuant to an express reservation of powers and were not parties in their personal capacity; accordingly costs of the validation order and provisional liquidator applications are payable by the companies as liquidation expenses, the Petitioners are entitled to their costs of the validation applications, and the Jersey Receivers' costs of HCMP 789/2008 are to be paid by the companies (3rd and 4th defendants) taxed on party and party if not agreed.

Citation
RE DIANOOR INTERNATIONAL LTD
Parties
Plaintiffs: Kevin Roy Mawer; Richard Dixon Fleming (Joint Receivers and Managers of the I.M.K. Family Trust); Petitioners: Petitioners in HCCW 576/2008 and HCCW 577/2008; 1st Defendant: Wani Mohamed Hussain; 2nd Defendant: Aiyer Vembu Subramaniam; 3rd Defendant: Dianoor International Limited; 4th Defendant: Dianoor Jewelcraft Limited; 5th Defendant: Checkers Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
15 June 2012
Case Number
HCCW576/2008
Procedural Posture
Companies Winding Up and Related Applications / Decision on Costs Following Judgment of 23 December 2009
Outcome
Costs orders made in favour of Receivers and Petitioners; directors not personally liable for costs of validation and provisional liquidator applications; Jersey Receivers' costs awarded against the companies
Legal Topics
Winding Up, Validation Orders, Provisional Liquidators, Receivers and Managers, Taxation of Costs, Costs Against Directors, Bathampton Orders
Source Language
EN
Company Law Insolvency Law Civil Procedure Costs Law Winding Up Validation Orders Provisional Liquidators Receivers and Managers +3 more

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Parties

Kevin Roy Mawer; Richard Dixon Fleming (Joint Receivers and Managers of the I.M.K. Family Trust)

Plaintiffs

Petitioners in HCCW 576/2008 and HCCW 577/2008

Petitioners

Wani Mohamed Hussain

1st Defendant

Aiyer Vembu Subramaniam

2nd Defendant

Dianoor International Limited

3rd Defendant

Dianoor Jewelcraft Limited

4th Defendant

Checkers Limited

5th Defendant

Procedural Posture

Companies Winding Up and Related Applications / Decision on Costs Following Judgment of 23 December 2009

Legal Issues

  1. 1 Whether directors (Aiyer and Wani) could be ordered to pay costs personally for validation order and provisional liquidator applications after 17 February 2009
  2. 2 Whether the Petitioners were entitled to recover their costs of the validation order applications
  3. 3 What order, if any, should be made as to costs of HCMP 789/2008

Ratio Decidendi

The court held that Aiyer and Wani acted on behalf of the companies pursuant to an express reservation of powers and were not parties in their personal capacity; accordingly costs of the validation order and provisional liquidator applications are payable by the companies as liquidation expenses, the Petitioners are entitled to their costs of the validation applications, and the Jersey Receivers' costs of HCMP 789/2008 are to be paid by the companies (3rd and 4th defendants) taxed on party and party if not agreed.

Court Disposition

Costs orders made in favour of Receivers and Petitioners; directors not personally liable for costs of validation and provisional liquidator applications; Jersey Receivers' costs awarded against the companies

Orders

  • Validation applications (HCCW 576 and 577 of 2008): Petitioners and Receivers costs to be taxed and paid to the Petitioners and the Receivers respectively as an expense of the liquidation of the company concerned
  • Appointment of provisional liquidators (HCCW 576, 577 of 2008 and HCCW 27 of 2009): Receivers' costs of the applications to be taxed and paid to the Receivers as an expense of the liquidation of the company concerned