RE OCEAN TIME DEVELOPMENT LTD

RE OCEAN TIME DEVELOPMENT LTD

The court varied its costs orders: certified the appeals as fit for two counsel; allowed the liquidators to meet the costs payable to the creditor out of the companies' assets (subject to any shortfall); ordered that GGI pay the liquidators' costs of the striking out application and of the action on an indemnity basis because the proceedings were misconceived procedurally (should have been pursued under s.276) and were wholly futile, thereby justifying indemnity costs to prevent the liquidators and creditors bearing the shortfall.

Citation
RE OCEAN TIME DEVELOPMENT LTD
Parties
Plaintiff/creditor: Grand Gain Investment Limited; 1st Defendant/liquidator: Cosimo Borrelli; 2nd Defendant/liquidator: Kelvin Edward Flynn; Company in Liquidation: Ocean Time Development Limited; Company in Liquidation: Goldgood Properties Limited; Company in Liquidation: Tinson International Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
6 September 2006
Case Number
HCCW336/2004
Procedural Posture
Companies (winding Up) Proceedings and Related Civil Action (hccw and Hca) / Costs Ruling on Applications to Vary Costs Orders Following Substantive Decisions on Proofs of Debt and a Strike Out Application
Outcome
Costs orders nisi varied: certification for two counsel granted; liquidators to pay 90% of GGI's costs of the appeals recoverable from company assets where sufficient; GGI ordered to pay liquidators' costs of the striking out application and the action on an indemnity basis; each party to bear their own costs of the...
Legal Topics
Indemnity Costs, Party and Party Costs, Proof of Debt Appeals, Section 276 Companies Ordinance, Strike Out for No Reasonable Cause of Action, Recoupment of Liquidators' Costs From Company Assets
Source Language
EN
Company Law Insolvency Civil Procedure Costs Indemnity Costs Party and Party Costs Proof of Debt Appeals Section 276 Companies Ordinance +2 more

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Parties

Grand Gain Investment Limited

Plaintiff/creditor

Cosimo Borrelli

1st Defendant/liquidator

Kelvin Edward Flynn

2nd Defendant/liquidator

Ocean Time Development Limited

Company in Liquidation

Goldgood Properties Limited

Company in Liquidation

Tinson International Limited

Company in Liquidation

Procedural Posture

Companies (winding Up) Proceedings and Related Civil Action (hccw and Hca) / Costs Ruling on Applications to Vary Costs Orders Following Substantive Decisions on Proofs of Debt and a Strike Out Application

Legal Issues

  1. 1 Whether the costs order should be varied to certify two counsel for the creditor
  2. 2 Whether the costs payable by the liquidators may be recouped from the assets of the companies
  3. 3 Whether the creditor should be ordered to pay the liquidators' costs of the striking out application and action on an indemnity basis

Ratio Decidendi

The court varied its costs orders: certified the appeals as fit for two counsel; allowed the liquidators to meet the costs payable to the creditor out of the companies' assets (subject to any shortfall); ordered that GGI pay the liquidators' costs of the striking out application and of the action on an indemnity basis because the proceedings were misconceived procedurally (should have been pursued under s.276) and were wholly futile, thereby justifying indemnity costs to prevent the liquidators and creditors bearing the shortfall.

Court Disposition

Costs orders nisi varied: certification for two counsel granted; liquidators to pay 90% of GGI's costs of the appeals recoverable from company assets where sufficient; GGI ordered to pay liquidators' costs of the striking out application and the action on an indemnity basis; each party to bear their own costs of the...

Orders

  • Matter certified fit for attendance of two counsel for Grand Gain Investment Limited
  • Liquidators to pay Grand Gain Investment Limited 90% of its costs of the appeals, to be taxed on the party and party basis; liquidators may recoup such costs from the assets of the companies insofar as sufficient