RE LAU YU also known as JAFFE LAU

RE LAU YU also known as JAFFE LAU

Leave to appeal refused because the deputy judge did not err in law or principle: he identified a lawful process (winding up by the trustee/shareholder if the transfer is reversed) satisfying the second limb of Chabra; he made findings of real risk of dissipation and abuse of corporate arrangements; and he properly exercised discretion in accepting a limited cross-undertaking of HK$40,000,000 and in making disclosure and costs orders, such that there were no reasonable prospects of success on appeal.

Citation
[2018] HKCFI 2542
Parties
Applicant: Patrick Cowley; Applicant: Wong Wing Sze; Applicant Trustees in Bankruptcy: Tiffany (Joint and Several Trustees in Bankruptcy of the Property of the Bankrupt); 1st Respondent: All Powerful Holding Limited; 2nd Respondent: All Powerful Investment Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
16 November 2018
Case Number
HCB104/2017
Procedural Posture
Application for Leave to Appeal Against Interlocutory Injunctions in Bankruptcy Proceedings / Chambers Hearing — Application for Leave to Appeal (interlocutory)
Outcome
Application for leave to appeal dismissed with costs
Legal Topics
Chabra Injunctions, Freezing Orders, Cross Undertaking in Damages, Disclosure Orders, Piercing the Corporate Veil, Transactions at Undervalue, Fraudulent Disposition
Source Language
EN
Bankruptcy Injunctions Civil Procedure Company Law Equity and Trusts Chabra Injunctions Freezing Orders Cross Undertaking in Damages +4 more

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Parties

Patrick Cowley

Applicant

Wong Wing Sze

Applicant

Tiffany (Joint and Several Trustees in Bankruptcy of the Property of the Bankrupt)

Applicant Trustees in Bankruptcy

All Powerful Holding Limited

1st Respondent

All Powerful Investment Limited

2nd Respondent

Procedural Posture

Application for Leave to Appeal Against Interlocutory Injunctions in Bankruptcy Proceedings / Chambers Hearing — Application for Leave to Appeal (interlocutory)

Legal Issues

  1. 1 Whether the court had jurisdiction under Chabra principles to grant interlocutory injunctions against third party companies not sued in the substantive proceedings
  2. 2 Whether the assets of third party companies would be amenable to enforcement such that the 2nd limb requirement of Chabra/Paul Cardile is satisfied
  3. 3 Whether a limited cross-undertaking in damages (HK$40,000,000) was appropriate

Ratio Decidendi

Leave to appeal refused because the deputy judge did not err in law or principle: he identified a lawful process (winding up by the trustee/shareholder if the transfer is reversed) satisfying the second limb of Chabra; he made findings of real risk of dissipation and abuse of corporate arrangements; and he properly exercised discretion in accepting a limited cross-undertaking of HK$40,000,000 and in making disclosure and costs orders, such that there were no reasonable prospects of success on appeal.

Court Disposition

Application for leave to appeal dismissed with costs

Orders

  • Leave to appeal dismissed
  • Costs awarded to the trustees