RE GOODWAY LTD

RE GOODWAY LTD

The court held that the consideration was paid under a mistake of law as to the assignability of most claims; applying Ex parte James the Official Receiver, as officer of the court, must act impartially and repay the mistaken consideration. The court sanctioned a refund of $349,900 to Yook Tong, ascribed token value $100 to the validly assigned claims, and ordered that the committee vacancy need not be filled; no order as to costs was made.

Citation
RE GOODWAY LTD
Parties
Applicant/liquidator: Official Receiver (liquidator of Goodway Limited); Company (in Liquidation): Goodway Limited; Assignee/claimant: Yook Tong Electric Company Limited; Defendant in Underlying Action: Pirelli Cavi E Sistemi SPA; Creditor/objector: Prysmian Cables Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
26 September 2008
Case Number
HCCW162/1998
Procedural Posture
Companies (winding Up) No. 162 of 1998 / Chambers Directions and Sanction Hearing (ex Parte Application)
Outcome
Application granted in part: order under s.207(7) that vacancy need not be filled; sanction granted under s.200(3) to refund $349,900 to Yook Tong and to ascribe token value $100 to validly assigned claims; no order as to costs.
Legal Topics
Refund Under Ex Parte James, Assignment of Contractual Claims, Mistake of Law, Duties of Liquidator, Committee of Inspection
Source Language
EN
Company Law Insolvency Equity Civil Procedure Refund Under Ex Parte James Assignment of Contractual Claims Mistake of Law Duties of Liquidator +1 more

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Parties

Official Receiver (liquidator of Goodway Limited)

Applicant/liquidator

Goodway Limited

Company (in Liquidation)

Yook Tong Electric Company Limited

Assignee/claimant

Pirelli Cavi E Sistemi SPA

Defendant in Underlying Action

Prysmian Cables Limited

Creditor/objector

Procedural Posture

Companies (winding Up) No. 162 of 1998 / Chambers Directions and Sanction Hearing (ex Parte Application)

Legal Issues

  1. 1 Whether vacancy in committee of inspection need be filled under s.207(7) Cap.32
  2. 2 Whether the Official Receiver should be sanctioned under s.200(3) Cap.32 to refund consideration paid under the assignment
  3. 3 Whether the consideration was paid under a mistake of law such that equity requires restitution

Ratio Decidendi

The court held that the consideration was paid under a mistake of law as to the assignability of most claims; applying Ex parte James the Official Receiver, as officer of the court, must act impartially and repay the mistaken consideration. The court sanctioned a refund of $349,900 to Yook Tong, ascribed token value $100 to the validly assigned claims, and ordered that the committee vacancy need not be filled; no order as to costs was made.

Court Disposition

Application granted in part: order under s.207(7) that vacancy need not be filled; sanction granted under s.200(3) to refund $349,900 to Yook Tong and to ascribe token value $100 to validly assigned claims; no order as to costs.

Orders

  • Order under Companies Ordinance Cap.32 s.207(7) that the vacancy in the committee of inspection need not be filled.
  • Sanction under Companies Ordinance Cap.32 s.200(3) authorising the Official Receiver to refund HKD 349900 to Yook Tong Electric Company Limited.