RE HK FULLSON CO LTD

RE HK FULLSON CO LTD

Section 182 was held not applicable to an assignment of a bank's mortgage/charge over company property; charges held by secured creditors are administered outside the winding‑up regime and, while applicants may be entitled to subrogation under Cap.23 s.15 if they pay the indebtedness, no relief under section 182 should be granted. The summons was dismissed.

Citation
RE HK FULLSON CO LTD
Parties
Applicant: Law Chak Kwan; Applicant: Madam Chan Tai Ti; Company: H.K. Fullson Company Limited; Respondent Bank: Citic Ka Wah Bank Limited; Respondent Official Receiver: Official Receiver; Petitioner: Unknown Petitioner; Respondents: 2nd to 4th Respondents
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
5 January 2006
Case Number
HCCW374/2005
Procedural Posture
Companies (winding Up) / Chambers Hearing on Summons Under Section 182 (interlocutory Application)
Outcome
Application dismissed
Legal Topics
Assignment of Security, Subrogation, Mortgage, Section 182 Companies Ordinance, Set Off, Vesting of Company Property
Source Language
EN
Company Law Insolvency Secured Transactions Banking Law Assignment of Security Subrogation Mortgage Section 182 Companies Ordinance +2 more

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Parties

Law Chak Kwan

Applicant

Madam Chan Tai Ti

Applicant

H.K. Fullson Company Limited

Company

Citic Ka Wah Bank Limited

Respondent Bank

Official Receiver

Respondent Official Receiver

Unknown Petitioner

Petitioner

2nd to 4th Respondents

Respondents

Procedural Posture

Companies (winding Up) / Chambers Hearing on Summons Under Section 182 (interlocutory Application)

Legal Issues

  1. 1 Whether section 182 of the Companies Ordinance applies to an assignment by a bank of mortgages/chages over company property
  2. 2 Whether applicants are entitled to assignment/subrogation of the bank's securities under section 15 of Cap.23 after payment of the company's indebtedness
  3. 3 Whether the Official Receiver's consent is required for such assignment

Ratio Decidendi

Section 182 was held not applicable to an assignment of a bank's mortgage/charge over company property; charges held by secured creditors are administered outside the winding‑up regime and, while applicants may be entitled to subrogation under Cap.23 s.15 if they pay the indebtedness, no relief under section 182 should be granted. The summons was dismissed.

Court Disposition

Application dismissed

Orders

  • Application dismissed
  • No relief granted under section 182 of the Companies Ordinance