GLOBALINK INTERNATIONAL ENTERPRISE LTD v. UNIVERSAL SHEEN GROUP LTD (IN LIQUIDATION)

GLOBALINK INTERNATIONAL ENTERPRISE LTD v. UNIVERSAL SHEEN GROUP LTD (IN LIQUIDATION)

The court held that service at the registered office complied with Companies Ordinance s356 and the judgments were therefore regularly obtained; Universal Sheen failed to show a real prospect of success on the Yick Fung claim so the default judgment in DCCJ 5145/2007 was not set aside; however material and intertwined factual disputes concerning Globalink's alleged loans/advancements and the nature of payments gave Universal Sheen a real prospect of success so the default judgment in DCCJ 5146/2007 was set aside.

Citation
GLOBALINK INTERNATIONAL ENTERPRISE LTD v. UNIVERSAL SHEEN GROUP LTD (IN LIQUIDATION)
Parties
Plaintiff (dccj 5145/2007): Yick Fung Plastic Industrial Limited; Plaintiff (dccj 5146/2007): Globalink International Enterprise Limited; Defendant: Universal Sheen Group Limited (in liquidation)
Court
District Court
Jurisdiction
Hong Kong
Judgment Date
2 July 2009
Case Number
DCCJ5146/2007
Procedural Posture
Civil Debt Actions — Default Judgments and Applications to Set Aside; Related Insolvency Proceedings / Application to Set Aside Default Judgments in Liquidation Context; Leave Required to Continue Proceedings in Liquidation
Outcome
Application to set aside judgment in DCCJ 5145/2007 dismissed; judgment in DCCJ 5146/2007 dated 17 December 2007 set aside; costs awarded to Globalink in respect of the application in DCCJ 5146/2007; Globalink must obtain the court's leave to continue proceedings against Universal Sheen in liquidation.
Legal Topics
Service of Process, Default Judgment, Setting Aside Judgments, Leave to Continue Proceedings in Liquidation, Contract Formation for Sale of Goods, Loans and Advancements
Source Language
EN
Company Law Civil Procedure Insolvency and Liquidation Contract Law Debt Recovery Service of Process Default Judgment Setting Aside Judgments +3 more

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Parties

Yick Fung Plastic Industrial Limited

Plaintiff (dccj 5145/2007)

Globalink International Enterprise Limited

Plaintiff (dccj 5146/2007)

Universal Sheen Group Limited (in liquidation)

Defendant

Procedural Posture

Civil Debt Actions — Default Judgments and Applications to Set Aside; Related Insolvency Proceedings / Application to Set Aside Default Judgments in Liquidation Context; Leave Required to Continue Proceedings in Liquidation

Legal Issues

  1. 1 Whether the default judgments were regularly obtained
  2. 2 Whether service by leaving documents at the registered office under Companies Ordinance s356 was valid
  3. 3 Whether Universal Sheen demonstrated a real prospect of success to justify setting aside the default judgment in DCCJ 5145/2007

Ratio Decidendi

The court held that service at the registered office complied with Companies Ordinance s356 and the judgments were therefore regularly obtained; Universal Sheen failed to show a real prospect of success on the Yick Fung claim so the default judgment in DCCJ 5145/2007 was not set aside; however material and intertwined factual disputes concerning Globalink's alleged loans/advancements and the nature of payments gave Universal Sheen a real prospect of success so the default judgment in DCCJ 5146/2007 was set aside.

Court Disposition

Application to set aside judgment in DCCJ 5145/2007 dismissed; judgment in DCCJ 5146/2007 dated 17 December 2007 set aside; costs awarded to Globalink in respect of the application in DCCJ 5146/2007; Globalink must obtain the court's leave to continue proceedings against Universal Sheen in liquidation.

Orders

  • Application to set aside the judgment in DCCJ 5145/2007 dismissed with costs.
  • The judgment against Universal Sheen in DCCJ 5146/2007 dated 17 December 2007 is set aside.