STATE BANK OF INDIA AND ANOTHER v. LISBELLAW LTD AND OTHERS

STATE BANK OF INDIA AND ANOTHER v. LISBELLAW LTD AND OTHERS

An interest in textile export quota, though created as a public law privilege, is an assignable intangible proprietary right capable of being sold and charged; such an interest may be subject to a fixed charge where the chargee obtains control over disposition of the quota, and a fixed charge over quota not falling within the categories of s.80(2) Companies Ordinance does not require registration under s.80; on the facts certain instruments were fixed charges and the comparable debentures ranked pari passu.

Citation
STATE BANK OF INDIA AND ANOTHER v. LISBELLAW LTD AND OTHERS
Parties
1st Plaintiff: State Bank of India; 2nd Plaintiff: UCO Bank; 1st Defendant: Lisbellaw Limited; 2nd Defendant: Murjani Industries (Hong Kong) Limited (In Voluntary Liquidation); 3rd Defendant: Bank of Credit and Commerce Hong Kong Limited; 4th Defendant: Credit Agricole
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
28 June 1989
Case Number
HCMP792/1989
Procedural Posture
High Court Miscellaneous Proceedings (originating Summons) / Judgment (originating Summons Adjourned)
Outcome
Originating summons adjourned for parties to consider judgment; no substantive order made at this stage
Legal Topics
Textile Export Quota, Assignability, Intangible Property, Fixed Charge, Floating Charge, Priority of Charges, Registration of Charges, Legitimate Expectation
Source Language
EN
Property Law Company Law Trusts and Equity Public Law Banking and Secured Transactions Textile Export Quota Assignability Intangible Property +5 more

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Parties

State Bank of India

1st Plaintiff

UCO Bank

2nd Plaintiff

Lisbellaw Limited

1st Defendant

Murjani Industries (Hong Kong) Limited (In Voluntary Liquidation)

2nd Defendant

Bank of Credit and Commerce Hong Kong Limited

3rd Defendant

Credit Agricole

4th Defendant

Procedural Posture

High Court Miscellaneous Proceedings (originating Summons) / Judgment (originating Summons Adjourned)

Legal Issues

  1. 1 Is an interest in textile export quota property or only a public law legitimate expectation?
  2. 2 Can an interest in quota be assigned, sold or charged?
  3. 3 Whether a charge over quota can be fixed or only floating?

Ratio Decidendi

An interest in textile export quota, though created as a public law privilege, is an assignable intangible proprietary right capable of being sold and charged; such an interest may be subject to a fixed charge where the chargee obtains control over disposition of the quota, and a fixed charge over quota not falling within the categories of s.80(2) Companies Ordinance does not require registration under s.80; on the facts certain instruments were fixed charges and the comparable debentures ranked pari passu.

Court Disposition

Originating summons adjourned for parties to consider judgment; no substantive order made at this stage

Orders

  • Originating summons adjourned with liberty to plaintiffs and any defendant to restore the originating summons for further consideration or amendment
  • No order as to costs at this stage