WONG SUN KEUNG AND ANOTHER v. LABOUR BUILDINGS LTD AND OTHERS

WONG SUN KEUNG AND ANOTHER v. LABOUR BUILDINGS LTD AND OTHERS

The court found that on the evidence LBL was indebted to Winland as at the date of hearing and therefore the receivers had been properly appointed and possessed the necessary powers under the debenture to carry out the acts sought; accordingly the application by the receivers was granted and costs were ordered to be paid out of LBL's assets. The deed provision relied upon did not conclusively negate Winland's remaining claims.

Citation
WONG SUN KEUNG AND ANOTHER v. LABOUR BUILDINGS LTD AND OTHERS
Parties
Plaintiffs (joint and Several Receivers and Managers of No.11 Changsha Street, Mongkok, Kowloon): WONG SUN KEUNG; TSUI MEI YUK, JANICE; 1st Defendant: LABOUR BUILDINGS LIMITED; 2nd Defendant (designated Purchaser Under Provisional Agreement): STAR RAINBOW; 3rd Defendant (lender Under Debenture): WINLAND
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
3 February 2010
Case Number
HCMP2544/2009
Procedural Posture
Receivership / Inherent Jurisdiction Application Under Rules of the High Court / Application Hearing and Reasons for Decision (order Granted)
Outcome
Application granted
Legal Topics
Debenture, Legal Charge/mortgage, Appointment of Receivers, Tracing Assets, Settlement Clause, Conflict of Interest, Inquiry Into Asset Diversion
Source Language
EN
Property Law Insolvency and Winding Up Secured Transactions Equity and Trusts Civil Procedure Debenture Legal Charge/mortgage Appointment of Receivers +4 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 3 Authorities cited 2 Party arguments 2 Amounts and remedies 8
Sign in to unlock

Parties

WONG SUN KEUNG; TSUI MEI YUK, JANICE

Plaintiffs (joint and Several Receivers and Managers of No.11 Changsha Street, Mongkok, Kowloon)

LABOUR BUILDINGS LIMITED

1st Defendant

STAR RAINBOW

2nd Defendant (designated Purchaser Under Provisional Agreement)

WINLAND

3rd Defendant (lender Under Debenture)

Procedural Posture

Receivership / Inherent Jurisdiction Application Under Rules of the High Court / Application Hearing and Reasons for Decision (order Granted)

Legal Issues

  1. 1 Whether Labour Buildings Limited (LBL) was indebted to Winland as at the date of hearing
  2. 2 Whether the receivers were validly appointed and possessed the powers under the debenture to perform the acts sought
  3. 3 Whether clause(s) in the deed dated 10 July 2009 operated as a full and final settlement of Winland's claims

Ratio Decidendi

The court found that on the evidence LBL was indebted to Winland as at the date of hearing and therefore the receivers had been properly appointed and possessed the necessary powers under the debenture to carry out the acts sought; accordingly the application by the receivers was granted and costs were ordered to be paid out of LBL's assets. The deed provision relied upon did not conclusively negate Winland's remaining claims.

Court Disposition

Application granted

Orders

  • Application by the plaintiffs (receivers) granted
  • Costs to be paid out of the assets of Labour Buildings Limited