Hong Kong Judgment

Court of First Instance

RE TOWN\'S INDUSTRIAL LTD

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Source document

01

Holding and result

The statutory demand based on the Labour Tribunal award was properly served and not complied with, the debt was established and unopposed, and the Company failed to file evidence or obtain leave for representation; accordingly the court made a winding-up order and directed that the petitioner's costs be paid out of the Company's assets.

Court disposition

Winding-up order made against the Company.

Orders

  • The Company is to be wound up.
  • The petitioner\'s costs of these proceedings, including the costs reserved by the Master on 19 September 2007, are to be paid out of the Company\'s assets.

02

Material facts

Parties

So Kong Yiu

Petitioner Counsel: Ms Clara Tam, Legal Aid Department

Town S Industrial Limited

Company (respondent)

Official Receiver

Official Receiver Counsel: Miss Vivian Yeung

Amounts and remedies

  • Petitioning Debt (labour Tribunal Award): HKD 61,200
  • Other Employee Debts (aggregate): HKD 43,126

03

Procedural history

  1. Posture

    Winding Up Petition / Judgment (winding Up Order Made)

04

Questions and positions

Legal issues

Party arguments

Applicant
Petitioner relied on a Labour Tribunal award of $61,200 with interest, served a demand on 10 May 2007 which was not complied with, and therefore sought a winding-up order.
Respondent
The Company did not file any evidence or obtain leave for a director to represent it; no opposition was presented and no substantive argument was advanced on behalf of the Company.

05

Court’s reasoning

  1. 01

    Companies Ordinance, Chapter 32

    A company may be wound up if it is unable to pay its debts.

  2. 02

    Companies Ordinance and established insolvency practice

    Failure to comply with a statutory demand is evidence of inability to pay and grounds for a winding-up petition.

  3. 03

    Court practice and procedural rules

    A director must obtain leave of the court to represent a company in proceedings.

06

Ratio, limits and disposition

Ratio decidendi

The statutory demand based on the Labour Tribunal award was properly served and not complied with, the debt was established and unopposed, and the Company failed to file evidence or obtain leave for representation; accordingly the court made a winding-up order and directed that the petitioner's costs be paid out of the Company's assets.

Obiter and limits

  • The director was reminded of the need to seek leave to represent the Company.
  • Costs reserved by the Master on 19 September 2007 are included in the costs to be paid from the Company's assets.

Court disposition

Winding-up order made against the Company.

  • The Company is to be wound up.
  • The petitioner\'s costs of these proceedings, including the costs reserved by the Master on 19 September 2007, are to be paid out of the Company\'s assets.

Source and reliance status

Court of First Instance · 24 September 2007

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Judgment text

The complete available source text.

Source document

Court of First Instance

Judgment· 24 September 2007

RE TOWN\'S INDUSTRIAL LTD

bjbj HCCW 328/2007

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF FIRST INSTANCE COMPANIES (WINDING-UP) NO. 328 OF 2007 ____ IN THE MATTER of TOWN

S INDUSTRIAL LIMITED and IN THE MATTER of the Companies Ordinance, Chapter 32 of the Laws of Hong Kong ____ Before: Hon Kwan J in Court Date of Hearing: 24 September 2007 Date of Judgment: 24 September 2007 ______

J U D G M E N T ______ This petition was presented by So Kong Yiu, seeking a winding-up order against Town s Industrial Limited ( the Company ), on the basis of an award of $61,200.00 with interest obtained by the petitioner against the Company in the Labour Tribunal on 15 December 2006. The Company is indebted to two other employees in the aggregate of $43,126.00 with interest on the same award in the Labour Tribunal. A demand for the petitioning debt was served on the Company on 10 May 2007. As the demand was not complied with, the petition was presented on 18 July 2007. The Company appeared by a director Chan Kwok Hang before the Master on 19 September 2007. He was reminded of the need to seek leave for a director to represent the Company in these proceedings. No leave has been obtained and the Company has not appeared today. No evidence has been filed by the Company to oppose the petition. I make an order to wind up the Company. The petitioner s costs of these proceedings, including the costs reserved by the Master on 19 September 2007, are to be paid out of the Company s assets. (S Kwan) Judge of the Court of First Instance High Court Ms Clara Tam of Legal Aid Department, for the Petitioner The Company, absent Miss Vivian Yeung, for the Official Receiver

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Authorities

Authorities used by the court

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Companies Ordinance, Chapter 32 of the Laws of Hong Kong

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