KARAHA BODAS CO AND ANOTHER v. PERUSAHAAN PERTAMBANGAN MINYAK DAN GAS BUMI NEGARA

KARAHA BODAS CO AND ANOTHER v. PERUSAHAAN PERTAMBANGAN MINYAK DAN GAS BUMI NEGARA

There was no sufficient post-judgment change of circumstances to justify extending the Receivers' powers; the Receivers had asked the wrong question and the companies' replies were accurate and not evidence of deliberate obstruction. The shareholders' purported rescission of the dividend could not defeat KBC's equitable charge created by the garnishee order nisi, so Tugu, as garnishee, is liable to pay the dividend attributable to Pertamina to KBC (US$156,750). Leave to appeal out of time is granted and the appeal against discharge of the garnishee order is allowed.

Citation
KARAHA BODAS CO AND ANOTHER v. PERUSAHAAN PERTAMBANGAN MINYAK DAN GAS BUMI NEGARA
Parties
Judgment Creditor: KARAH A BODAS COMPANY L L C; Judgment Debtor: PERUSAHAAN PERTAMBANGAN MINYAK DAN GAS BUMI NEGARA (PERTAMINA); Garnishee: PERTAMINA ENERGY TRADING LIMITED; Garnishee: TUGU INSURANCE COMPANY LIMITED; Garnishee: KOREA INDONESIA PETROLEUM COMPANY LIMITED; Receivers: Receivers
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
25 November 2004
Case Number
HCCT28/2002
Procedural Posture
Construction and Arbitration Enforcement Proceedings / Judgment on Extension Summons and Garnishee Appeal (court of First Instance, in Chambers)
Outcome
KBC's summons to extend the Receivers' powers dismissed; leave to appeal out of time granted; KBC's appeal allowed; Tugu ordered to pay US$156,750 to KBC; interest and costs reserved for further hearing
Legal Topics
Garnishee, Receivers' Powers, Equitable Charge, Dividend Rescission, Leave to Appeal Out of Time, Enforcement of Arbitration Award
Source Language
EN
Arbitration Enforcement Equity Company Law Civil Procedure Garnishee Receivers' Powers Equitable Charge +3 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 4 Authorities cited 2 Party arguments 2 Amounts and remedies 2
Sign in to unlock

Parties

KARAH A BODAS COMPANY L L C

Judgment Creditor

PERUSAHAAN PERTAMBANGAN MINYAK DAN GAS BUMI NEGARA (PERTAMINA)

Judgment Debtor

PERTAMINA ENERGY TRADING LIMITED

Garnishee

TUGU INSURANCE COMPANY LIMITED

Garnishee

KOREA INDONESIA PETROLEUM COMPANY LIMITED

Garnishee

Receivers

Receivers

Procedural Posture

Construction and Arbitration Enforcement Proceedings / Judgment on Extension Summons and Garnishee Appeal (court of First Instance, in Chambers)

Legal Issues

  1. 1 Whether the Court should extend the Receivers' powers after its earlier order of 3 June 2004
  2. 2 Whether a shareholder resolution rescinding a declared dividend after service of a garnishee order nisi can defeat the garnishor's equitable charge
  3. 3 Whether leave to appeal out of time should be granted against the discharge of a garnishee order nisi

Ratio Decidendi

There was no sufficient post-judgment change of circumstances to justify extending the Receivers' powers; the Receivers had asked the wrong question and the companies' replies were accurate and not evidence of deliberate obstruction. The shareholders' purported rescission of the dividend could not defeat KBC's equitable charge created by the garnishee order nisi, so Tugu, as garnishee, is liable to pay the dividend attributable to Pertamina to KBC (US$156,750). Leave to appeal out of time is granted and the appeal against discharge of the garnishee order is allowed.

Court Disposition

KBC's summons to extend the Receivers' powers dismissed; leave to appeal out of time granted; KBC's appeal allowed; Tugu ordered to pay US$156,750 to KBC; interest and costs reserved for further hearing

Orders

  • Dismissal of KBC's summons to extend Receivers' powers
  • Leave to appeal out of time against Master Yuen's order of 11 September 2003 granted