RE ALROCO CO. LTD.

RE ALROCO CO. LTD.

The court was satisfied the statutory demand was properly served; the agent defence failed because the Company contracted in its own name and produced no evidence creating a bona fide substantive dispute; the allegation that the cheques were conditional lacked particulars and evidence; the alleged tortious set-off was insufficient and could be pursued by liquidators; accordingly the Company was deemed unable to pay its debts under s.178(1)(a) and an order to wind up Alroco Company Limited was made.

Citation
RE ALROCO CO. LTD.
Parties
Petitioner: Honeycomb Garment Factory Ltd; Company/respondent: Alroco Company Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
6 May 2002
Case Number
HCCW1386/2001
Procedural Posture
Companies Winding Up Proceedings / Order for Winding Up Made After Hearing and Judgment
Outcome
Alroco Company Limited ordered to be wound up.
Legal Topics
Statutory Demand Service, Agency Liability, Conditional Cheques, Set Off, Winding Up Under S.178(1)(a)
Source Language
EN
Company Law Insolvency Contract Law Civil Procedure Statutory Demand Service Agency Liability Conditional Cheques Set Off +1 more

Case Brief

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Parties

Honeycomb Garment Factory Ltd

Petitioner

Alroco Company Limited

Company/respondent

Procedural Posture

Companies Winding Up Proceedings / Order for Winding Up Made After Hearing and Judgment

Legal Issues

  1. 1 Whether the statutory demand was properly served at the registered office
  2. 2 Whether the Company was merely agent for Starboard and therefore not contractually liable to the Petitioner
  3. 3 Whether the post-dated cheques were conditional on payment by a third party (Starboard) such as to negate liability

Ratio Decidendi

The court was satisfied the statutory demand was properly served; the agent defence failed because the Company contracted in its own name and produced no evidence creating a bona fide substantive dispute; the allegation that the cheques were conditional lacked particulars and evidence; the alleged tortious set-off was insufficient and could be pursued by liquidators; accordingly the Company was deemed unable to pay its debts under s.178(1)(a) and an order to wind up Alroco Company Limited was made.

Court Disposition

Alroco Company Limited ordered to be wound up.

Orders

  • Alroco Company Limited to be wound up