RE KEEN LLOYD RESOURCES LTD

RE KEEN LLOYD RESOURCES LTD

Leave was granted: a secured creditor is ordinarily entitled to enforce its security and, despite liquidators' investigatory concerns and allegations of fraud, the issues raised were such that they were more appropriately determined in separate proceedings; the liquidators' need for further information did not justify delaying enforcement of security over the three properties.

Citation
RE KEEN LLOYD RESOURCES LTD
Parties
Applicant (chargee/creditor): Bank of China (Hong Kong) Limited; Respondent (company in Liquidation): Keen Lloyd Resources Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
21 May 2004
Case Number
HCCW1134/2002
Procedural Posture
Companies (winding Up) / Application for Leave Under S186 of the Companies Ordinance and to Commence Proceedings Under Order 88
Outcome
Application granted in terms of the summons; leave granted to commence the intended proceedings to recover vacant possession of the three properties
Legal Topics
Leave to Commence Proceedings in Liquidation, Enforcement of Security, Recovery of Vacant Possession, Tenancy Validity, Allocation of Costs
Source Language
EN
Company Law Insolvency Mortgage Enforcement Civil Procedure Criminal Fraud Implications Leave to Commence Proceedings in Liquidation Enforcement of Security Recovery of Vacant Possession +2 more

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Parties

Bank of China (Hong Kong) Limited

Applicant (chargee/creditor)

Keen Lloyd Resources Limited

Respondent (company in Liquidation)

Procedural Posture

Companies (winding Up) / Application for Leave Under S186 of the Companies Ordinance and to Commence Proceedings Under Order 88

Legal Issues

  1. 1 Whether the secured creditor (bank) should be granted leave under section 186 to commence mortgage proceedings to recover possession of three charged properties
  2. 2 Whether disputes about alleged fraud and the validity of charges require determination in the liquidation or by separate proceedings
  3. 3 Whether the liquidators' investigatory concerns justify refusal or delay of leave

Ratio Decidendi

Leave was granted: a secured creditor is ordinarily entitled to enforce its security and, despite liquidators' investigatory concerns and allegations of fraud, the issues raised were such that they were more appropriately determined in separate proceedings; the liquidators' need for further information did not justify delaying enforcement of security over the three properties.

Court Disposition

Application granted in terms of the summons; leave granted to commence the intended proceedings to recover vacant possession of the three properties

Orders

  • Leave granted to the applicant to commence proceedings under Order 88 to recover vacant possession of the Altadena, Parkview and Dynasty properties
  • No order as to costs for the issue of the summons and the preparation of the first supporting affirmation