P T GRAHA MULTIMULIA CEMERLANG v. SILVER TECH ENTERPRISE LTD

P T GRAHA MULTIMULIA CEMERLANG v. SILVER TECH ENTERPRISE LTD

Because the petitioner was an overseas entity with no assets in Hong Kong and it had not clearly demonstrated the very high probability of success required to render an order unjust, the court exercised its discretion to order security for costs and fixed the sum at HK$200,000, with specified consequences for non-payment.

Citation
P T GRAHA MULTIMULIA CEMERLANG v. SILVER TECH ENTERPRISE LTD
Parties
Petitioner: P T Graha Multi Mulia Cemerlang; Respondent: Silver Tech Enterprise Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
1 March 2005
Case Number
HCCW883/2004
Procedural Posture
Companies (winding Up) Petition / Application for Security for Costs Prior to Hearing of Winding Up Petition
Outcome
Security for costs ordered in favour of the Respondent
Legal Topics
Security for Costs, Winding Up Petition, Set Off/counterclaim, Jurisdiction/residence, Evidence Evaluation
Source Language
EN
Company Law Civil Procedure Costs Security for Costs Winding Up Petition Set Off/counterclaim Jurisdiction/residence Evidence Evaluation

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Parties

P T Graha Multi Mulia Cemerlang

Petitioner

Silver Tech Enterprise Limited

Respondent

Procedural Posture

Companies (winding Up) Petition / Application for Security for Costs Prior to Hearing of Winding Up Petition

Legal Issues

  1. 1 Whether security for costs should be ordered where petitioner is resident abroad and has no assets in jurisdiction
  2. 2 Whether petitioner has demonstrated a high degree of probability of success to make an order for security unjust
  3. 3 Whether the respondent's asserted set-off/cross-claims are sufficiently pleaded and evidenced to defeat an order for security

Ratio Decidendi

Because the petitioner was an overseas entity with no assets in Hong Kong and it had not clearly demonstrated the very high probability of success required to render an order unjust, the court exercised its discretion to order security for costs and fixed the sum at HK$200,000, with specified consequences for non-payment.

Court Disposition

Security for costs ordered in favour of the Respondent

Orders

  • Petitioner to provide security for costs by payment into court of HK$200,000.00 within 28 days
  • If payment is not made within 28 days all further proceedings are stayed until security is provided or the court otherwise orders; liberty to apply