CHINNEY CONSTRUCTION CO, LTD v. ONWAY ENGINEERING LTD

CHINNEY CONSTRUCTION CO, LTD v. ONWAY ENGINEERING LTD

The discovery summons was dismissed as unnecessary and ill-founded because the court only needed to be satisfied the cross-claim was bona fide and the companys asserted claim against Shun Wing had been struck out and could not operate as set-off; accordingly the petitioning creditors debt remained due and the...

Source-derived case information.

Citation
CHINNEY CONSTRUCTION CO, LTD v. ONWAY ENGINEERING LTD
Parties
Petitioner: Chinney Construction Company, Limited; Respondent: Onway Engineering Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
17 December 2009
Case Number
HCCW495/2007
Procedural Posture
Winding Up Petition / Judgment Following Hearing on Petition
Outcome
Onway Engineering Limited ordered to be wound up
Legal Topics
Winding Up, Set Off, Specific Discovery, Corporate Veil, Costs Orders
Source Language
en
Company Law Insolvency Civil Procedure Costs Winding Up Set Off Specific Discovery Corporate Veil +1 more

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Summary, issues, holding and outcome

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Parties

Chinney Construction Company, Limited

Petitioner

Onway Engineering Limited

Respondent

Procedural Posture

Winding Up Petition / Judgment Following Hearing on Petition

Legal Issues

  1. 1 Whether specific discovery should be ordered against the petitioner
  2. 2 Whether the respondent had a genuine cross-claim or set-off sufficient to defeat the winding-up petition
  3. 3 Whether the respondent could rely on a claim against a third party (Shun Wing) as set-off after that claim was struck out

Ratio Decidendi

The discovery summons was dismissed as unnecessary and ill-founded because the court only needed to be satisfied the cross-claim was bona fide and the companys asserted claim against Shun Wing had been struck out and could not operate as set-off; accordingly the petitioning creditors debt remained due and the company was ordered to be wound up with costs payable out of its assets.

Court Disposition

Onway Engineering Limited ordered to be wound up

Orders

  • The discovery summons is dismissed and the Company (Onway Engineering Limited) is ordered to pay the petitioners costs of the application, to be taxed if not agreed.
  • The Company (Onway Engineering Limited) is to be wound up.