Hong Kong Judgment

Court of First Instance

RE HONG FENG ENGINEERING LTD

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Source document

01

Holding and result

The court made a winding-up order because the petition was founded on an undisputed Labour Tribunal consent award debt, a statutory demand was served, the Company failed to appear or file opposing evidence after its solicitors withdrew, and there was no apparent basis to challenge the judgment debt, demonstrating inability to pay.

Court disposition

Winding-up order made against Hong Feng Engineering Limited

Orders

  • Winding-up order against Hong Feng Engineering Limited
  • Petitioner’s costs to be paid out of the Company’s assets

02

Material facts

Parties

Mr Wong Ki Sim Samuel

Petitioner Counsel: Mr Joseph Lo, Director of Legal Aid

Hong Feng Engineering Limited

Company (respondent) Counsel: Messrs Benny Kong & Peter Tang

Official Receiver

Official Receiver Counsel: Miss Sara Chung

Amounts and remedies

  • Petitioning Debt (labour Tribunal Award): HKD 24,700
  • Aggregate Debt to Two Other Employees: HKD 52,800

03

Procedural history

  1. Posture

    Companies (winding Up) No. 742 of 2003 / Winding Up Petition — Final Hearing and Judgment (25 August 2003)

04

Questions and positions

Legal issues

Party arguments

Applicant
Petitioner relied on a consent Labour Tribunal award ordering Hong Feng Engineering Limited to pay HK$24,700; demand was served; no evidence or appearance was filed by the Company after its solicitors withdrew instructions; petitioner asserted there was no basis to challenge the debt and sought a winding-up order.
Respondent
No substantive argument was advanced on behalf of the Company. Solicitors filed a Notice to Act then withdrew instructions; the Company did not appear, file evidence or apply for leave for a director to represent it.

05

Court’s reasoning

  1. 01

    Companies Ordinance, Cap. 32

    A company may be wound up if it is unable to pay its debts, including debts established by tribunal awards.

  2. 02

    Labour Tribunal award (LBTC) — consent order

    A consent award of the Labour Tribunal constitutes an enforceable debt that can support a winding-up petition where not disputed.

06

Ratio, limits and disposition

Ratio decidendi

The court made a winding-up order because the petition was founded on an undisputed Labour Tribunal consent award debt, a statutory demand was served, the Company failed to appear or file opposing evidence after its solicitors withdrew, and there was no apparent basis to challenge the judgment debt, demonstrating inability to pay.

Obiter and limits

  • Costs of the petitioner are to be paid out of the Company’s assets.
  • Withdrawal of solicitors’ instructions and absence of application for a director to represent the Company do not prevent the court from making a winding-up order when the debt is undisputed.

Court disposition

Winding-up order made against Hong Feng Engineering Limited

  • Winding-up order against Hong Feng Engineering Limited
  • Petitioner’s costs to be paid out of the Company’s assets

Source and reliance status

Court of First Instance · 25 August 2003

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Judgment text

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Source document

Court of First Instance

Judgment· 25 August 2003

RE HONG FENG ENGINEERING LTD

bjbj HCCW 742/2003

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF FIRST INSTANCE COMPANIES (WINDING-UP) NO. 742 OF 2003 ____ IN THE MATTER of HONG FENG ENGINEERING LIMITED and IN THE MATTER of the Companies Ordinance, Cap. 32 ____ Before: Hon Kwan J in Court Date of Hearing: 25 August 2003 Date of Judgment: 25 August 2003 ___

J U D G M E N T ___ This is a petition to wind up Hong Feng Engineering Limited ( the Company ) presented by its former employee, Mr Wong Ki Sim Samuel. The petitioning debt is based on an award made by the Labour Tribunal in LBTC No. 10707 of 2002 consolidated with LBTC No. 10800 of 2002 and LBTC No. 10890 of 2002. The award, made on 2 December 2002, was by consent. The Company was the 4th defendant in the proceedings. According to paragraph 4 of the order by consent, the Company was ordered to pay to the petitioner HK$24,700 in full and final settlement of the petitioner s claim. Apart from the petitioner, the Company was also ordered to pay to two other employees the aggregate sum of HK$52,800. The petitioner served a demand for his debt on the Company on 16 May 2003 and the petition herein was presented on 9 July 2003. A Notice to Act for the Company was filed by a firm of solicitors on 19 August 2003 but on 23 August 2003, the solicitors wrote to the petitioner s solicitors stating that they have no further instructions to act for the Company. The Company has not appeared today nor has any application been made for leave to be given for a director to represent the Company. No evidence in opposition has been filed by the Company. In the circumstances, as there is no apparent basis for challenging the judgment debt in favour of the petitioner, I make a winding-up order against the Company. I order that the petitioner s costs are to be paid out of the Company s assets. (S Kwan) Judge of the Court of First Instance High Court Mr Joseph Lo of Director of Legal Aid, for the Petitioner Messrs Benny Kong & Peter Tang, for the Company, absent Miss Sara Chung for the Official Receiver

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Authorities

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Companies Ordinance, Cap. 32

Legislation

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