RE Y.S. LEE & SONS JEWELLERY CO. LTD.

RE Y.S. LEE & SONS JEWELLERY CO. LTD.

Posting a statutory demand to the registered office by post does not comply with the specific service requirement in s.178(a) of the Companies Ordinance; however, on the facts the court was satisfied the company was unable to pay its debts under s.177(d) due to dishonoured cheques and entered a winding up order.

Citation
RE Y.S. LEE & SONS JEWELLERY CO. LTD.
Parties
Petitioner: Petitioner (creditor); Official Receiver: Official Receiver; Company/respondent: Y.S. Lee & Sons Jewellery Co. Ltd.
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
8 October 1984
Case Number
HCCW244/1984
Procedural Posture
Companies Winding Up / Ruling
Outcome
Company ordered to be wound up; petition not sustained on s.178(a) ground due to defective service but sustained under s.177(d) for inability to pay.
Legal Topics
Statutory Demand, Service by Post, Winding Up, Inability to Pay Debts, Strict Compliance
Source Language
EN
Company Law Insolvency Civil Procedure Service of Process Statutory Demand Service by Post Winding Up Inability to Pay Debts +1 more

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Parties

Petitioner (creditor)

Petitioner

Official Receiver

Official Receiver

Y.S. Lee & Sons Jewellery Co. Ltd.

Company/respondent

Procedural Posture

Companies Winding Up / Ruling

Legal Issues

  1. 1 Whether service of a statutory demand by post to the registered office complies with section 178(a) of the Companies Ordinance Cap.32
  2. 2 Whether strict compliance with s.178(a) is required
  3. 3 Whether the court can infer inability to pay under s.177(d) from dishonoured cheques and judgment debt

Ratio Decidendi

Posting a statutory demand to the registered office by post does not comply with the specific service requirement in s.178(a) of the Companies Ordinance; however, on the facts the court was satisfied the company was unable to pay its debts under s.177(d) due to dishonoured cheques and entered a winding up order.

Court Disposition

Company ordered to be wound up; petition not sustained on s.178(a) ground due to defective service but sustained under s.177(d) for inability to pay.

Orders

  • Order that Y.S. Lee & Sons Jewellery Co. Ltd. be wound up.
  • Petition not grounded on section 178(a) due to non-compliance with service requirements.