HARVEST INDUSTRIAL (HK) CO LTD v. NG NG YEUNG AND ANOTHER

HARVEST INDUSTRIAL (HK) CO LTD v. NG NG YEUNG AND ANOTHER

Ng, as sole shareholder and director, drew MS's post-dated cheques while MS was effectively insolvent and there was no genuine objective intention or prospect that the cheques would be honoured; the court therefore pierced the corporate veil and held Ng personally liable for the company's debt for the value of the dishonoured cheques.

Citation
HARVEST INDUSTRIAL (HK) CO LTD v. NG NG YEUNG AND ANOTHER
Parties
Plaintiff: HI; 1st Defendant: MS; 2nd Defendant: Ng
Court
District Court
Jurisdiction
Hong Kong
Judgment Date
25 August 2011
Case Number
DCCJ175/2010
Procedural Posture
Debt and Tort (deceit); Piercing Corporate Veil / Trial Judgment; Default Judgment Previously Entered Against MS
Outcome
Judgment for Plaintiff against Ng for HK$687,199 with interest at the judgment rate from date of writ until payment; costs to be paid by Ng, taxed if not agreed; default judgment previously entered against MS.
Legal Topics
Piercing Corporate Veil, Deceit, Dishonoured Cheques, Post Dated Cheques, Alter Ego, Lifting Corporate Veil, Default Judgment, Corporate Liability
Source Language
EN
Company Law Tort Contract Civil Procedure Insolvency Piercing Corporate Veil Deceit Dishonoured Cheques +5 more

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Parties

HI

Plaintiff

MS

1st Defendant

Ng

2nd Defendant

Procedural Posture

Debt and Tort (deceit); Piercing Corporate Veil / Trial Judgment; Default Judgment Previously Entered Against MS

Legal Issues

  1. 1 Whether Ng committed deceit by tendering post-dated cheques without intention to honour
  2. 2 Whether the corporate veil of MS should be pierced to hold Ng personally liable
  3. 3 Whether tendering post-dated cheques constitutes a representation of intention to pay

Ratio Decidendi

Ng, as sole shareholder and director, drew MS's post-dated cheques while MS was effectively insolvent and there was no genuine objective intention or prospect that the cheques would be honoured; the court therefore pierced the corporate veil and held Ng personally liable for the company's debt for the value of the dishonoured cheques.

Court Disposition

Judgment for Plaintiff against Ng for HK$687,199 with interest at the judgment rate from date of writ until payment; costs to be paid by Ng, taxed if not agreed; default judgment previously entered against MS.

Orders

  • Judgment in the sum of HK$687,199 against Ng with interest at the judgment rate from the date of writ until payment.
  • Ng shall pay the costs of this action, which shall be taxed, if not agreed.