CHINA ENERGY INDUSTRYDEVELOPMENT LTD v. CHINA PEOPLE (HONG KONG) LTD

CHINA ENERGY INDUSTRYDEVELOPMENT LTD v. CHINA PEOPLE (HONG KONG) LTD

It was not plain and obvious on the material before the court that the petitions were unarguable; therefore the applications to strike out the petitions in their entirety were refused. However, there was no factual basis shown in the petitions or evidence to justify including a prayer for a winding-up order as alternative relief under s.168A, and the prayers for winding up were struck out. Costs orders were made: respondents to pay 80% of petitioners' costs on the substantive application, and applicants who sought to file additional evidence to pay the other party's costs for those applications.

Citation
CHINA ENERGY INDUSTRYDEVELOPMENT LTD v. CHINA PEOPLE (HONG KONG) LTD
Parties
Petitioner (hccw 186/2013): Lai Chi Keung; 1st Respondent (hccw 186/2013): Wang Zhihua; 2nd Respondent (hccw 186/2013; 1st Respondent in HCCW 187 & 188/2013): China People (Hong Kong) Limited; Petitioner (hccw 187/2013): China Energy Industry Development Limited; Petitioner (hccw 188/2013): China Energy Utilization Limited; Ultimate Beneficial Owner of Petitioners: Dr Chen Huanghao; Alleged Appointed Director: Pang Guang Sheng
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
27 February 2014
Case Number
HCCW187/2013
Procedural Posture
Companies (winding Up) Proceedings Under Companies Ordinance (cap.32) / Interlocutory Ruling on Applications to Strike Out Petitions and Related Applications for Leave to File Additional Evidence
Outcome
Applications to strike out petitions in their entirety refused; prayers for winding-up struck out; costs orders made.
Legal Topics
Section 168 a, Section 177(1)(f), Duress, Strike Out, Winding Up, Costs, Discovery
Source Language
EN
Company Law Civil Procedure Injunctions and Equitable Relief Section 168 a Section 177(1)(f) Duress Strike Out Winding Up +2 more

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Parties

Lai Chi Keung

Petitioner (hccw 186/2013)

Wang Zhihua

1st Respondent (hccw 186/2013)

China People (Hong Kong) Limited

2nd Respondent (hccw 186/2013; 1st Respondent in HCCW 187 & 188/2013)

China Energy Industry Development Limited

Petitioner (hccw 187/2013)

China Energy Utilization Limited

Petitioner (hccw 188/2013)

Dr Chen Huanghao

Ultimate Beneficial Owner of Petitioners

Pang Guang Sheng

Alleged Appointed Director

Procedural Posture

Companies (winding Up) Proceedings Under Companies Ordinance (cap.32) / Interlocutory Ruling on Applications to Strike Out Petitions and Related Applications for Leave to File Additional Evidence

Legal Issues

  1. 1 Whether petitions are scandalous, frivolous or vexatious and should be struck out at interlocutory stage
  2. 2 Whether allegations of duress, false imprisonment and improper board resolutions are credible on the pleadings and affidavits
  3. 3 Whether prayer for a winding-up order is properly pleaded and justified as alternative relief to s.168A relief

Ratio Decidendi

It was not plain and obvious on the material before the court that the petitions were unarguable; therefore the applications to strike out the petitions in their entirety were refused. However, there was no factual basis shown in the petitions or evidence to justify including a prayer for a winding-up order as alternative relief under s.168A, and the prayers for winding up were struck out. Costs orders were made: respondents to pay 80% of petitioners' costs on the substantive application, and applicants who sought to file additional evidence to pay the other party's costs for those applications.

Court Disposition

Applications to strike out petitions in their entirety refused; prayers for winding-up struck out; costs orders made.

Orders

  • Application to strike out the three petitions refused
  • Prayer for a winding-up order struck out from the petitions