Re Datacom Wire & Cable Co. Ltd.

Re Datacom Wire & Cable Co. Ltd.

The opposing contributory (Mr Cheung) acted unreasonably in opposing the petition because his opposition lacked any bona fide basis on the sole issue of solvency; therefore the court departed from the ordinary costs rule and ordered specified allocation: original petitioner's advertising and presentation costs and supporting creditors/contributory costs up to 20 October 1999 paid as liquidation expenses, and costs after 20 October 1999 to be paid by the opposing contributory.

Citation
Re Datacom Wire & Cable Co. Ltd.
Parties
Petitioner: Stella International Ltd; Petitioner: Tay Suh Suh Industrial (HK) Co. Ltd; Opposing Creditor: Sun Ming Wah Holdings Ltd; Opposing Contributory: Mr Cheung Sing Kuen; Supporting Creditor: Luen Hung Fat Industrial Ltd; Supporting Contributory: Mr Chi Shi Jer; Company: Datacom Wire & Cable Company Ltd
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
14 February 2000
Case Number
HCCW717/1999
Procedural Posture
Companies Winding Up / Judgment on Costs Following Winding Up Order
Outcome
Winding up order made; costs allocated and ordered in favor of petitioners and supporting parties with personal liability for certain costs imposed on opposing contributory
Legal Topics
Winding Up, Costs, Opposition by Contributory, Adjournment and Section 182 Application
Source Language
EN
Company Law Insolvency Civil Procedure Winding Up Costs Opposition by Contributory Adjournment and Section 182 Application

Case Brief

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Parties

Stella International Ltd

Petitioner

Tay Suh Suh Industrial (HK) Co. Ltd

Petitioner

Sun Ming Wah Holdings Ltd

Opposing Creditor

Mr Cheung Sing Kuen

Opposing Contributory

Luen Hung Fat Industrial Ltd

Supporting Creditor

Mr Chi Shi Jer

Supporting Contributory

Datacom Wire & Cable Company Ltd

Company

Procedural Posture

Companies Winding Up / Judgment on Costs Following Winding Up Order

Legal Issues

  1. 1 Whether to depart from the ordinary costs rule in successful winding up petitions
  2. 2 Whether the opposing contributory acted unreasonably in opposing the petition
  3. 3 Proper allocation of costs as liquidation expenses versus personal liability of opposing parties

Ratio Decidendi

The opposing contributory (Mr Cheung) acted unreasonably in opposing the petition because his opposition lacked any bona fide basis on the sole issue of solvency; therefore the court departed from the ordinary costs rule and ordered specified allocation: original petitioner's advertising and presentation costs and supporting creditors/contributory costs up to 20 October 1999 paid as liquidation expenses, and costs after 20 October 1999 to be paid by the opposing contributory.

Court Disposition

Winding up order made; costs allocated and ordered in favor of petitioners and supporting parties with personal liability for certain costs imposed on opposing contributory

Orders

  • The original petitioner\'s costs of presenting and advertising the petition shall be paid out of the assets of the Company as a liquidation expense.
  • The costs of the creditors and contributories supporting the petition up to and including the hearing on 20 October 1999 shall be paid out of the assets of the Company as a liquidation expense.