IN RE SILK PLAN LTD.

IN RE SILK PLAN LTD.

Because the company failed to plead a set-off and did not resist the Order 14 summary judgment, the judgment debt was unimpeachable and entitled the petitioner to present a winding-up petition; a disputed claim that could have been litigated does not displace the prima facie right to a winding-up order based on a judgment debt.

Citation
IN RE SILK PLAN LTD.
Parties
Petitioner: Gapo Limited; Company: Silk Plan Limited; Official Receiver: Official Receiver
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
3 March 1999
Case Number
HCCW890/1998
Procedural Posture
Companies Winding Up Petition Under Companies Ordinance, Chapter 32 / Judgment Handed Down (order Nisi Made)
Outcome
Winding-up order made (order nisi) against Silk Plan Limited; petitioner awarded costs.
Legal Topics
Winding Up, Judgment Debt, Set Off, Summary Judgment, Order 14, Order 18 Rule 17
Source Language
EN
Company Law Insolvency Civil Procedure Contract Winding Up Judgment Debt Set Off Summary Judgment +2 more

Case Brief

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Parties

Gapo Limited

Petitioner

Silk Plan Limited

Company

Official Receiver

Official Receiver

Procedural Posture

Companies Winding Up Petition Under Companies Ordinance, Chapter 32 / Judgment Handed Down (order Nisi Made)

Legal Issues

  1. 1 Whether a petition to wind up can be based on a judgment debt obtained by summary judgment
  2. 2 Whether the company can rely on an unpleaded set-off (deposits) to defeat a winding-up petition
  3. 3 Whether a bona fide disputed cross-claim or counterclaim that was not reasonably litigated displaces the petitioning creditor's prima facie right to a winding-up order

Ratio Decidendi

Because the company failed to plead a set-off and did not resist the Order 14 summary judgment, the judgment debt was unimpeachable and entitled the petitioner to present a winding-up petition; a disputed claim that could have been litigated does not displace the prima facie right to a winding-up order based on a judgment debt.

Court Disposition

Winding-up order made (order nisi) against Silk Plan Limited; petitioner awarded costs.

Orders

  • Make winding-up order against Silk Plan Limited (order nisi).
  • Petitioner entitled to costs.