KEVIN ROY MAWER AND ANOTHER v. WANI MOHAMED HUSSAIN AND OTHERS

KEVIN ROY MAWER AND ANOTHER v. WANI MOHAMED HUSSAIN AND OTHERS

Directors who acted under an express exception to oppose winding-up did so on behalf of their companies and were not parties in their personal capacities for purposes of costs; therefore costs of the validation and provisional liquidator applications must be paid by the companies as expenses of liquidation, petitioners and receivers are entitled to their costs, and the Jersey Receivers' costs in HCMP 789 are payable by the companies (3rd and 4th defendants) to the plaintiffs taxed party-and-party.

Citation
KEVIN ROY MAWER AND ANOTHER v. WANI MOHAMED HUSSAIN AND OTHERS
Parties
Plaintiff (joint Receiver and Manager): Kevin Roy Mawer; Plaintiff (joint Receiver and Manager): Richard Dixon Fleming; Petitioners: Petitioners in HCCW 576/2008 and HCCW 577/2008; 1st Defendant: Wani Mohamed Hussain; 2nd Defendant: Aiyer Vembu Subramaniam; 3rd Defendant: Dianoor International Limited; 4th Defendant: Dianoor Jewelcraft Limited; 5th Defendant: Checkers Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
15 June 2012
Case Number
HCMP789/2008
Procedural Posture
Companies Winding Up and Associated Applications / Decision on Costs (post Judgment)
Outcome
Costs allocated largely in favour of the Receivers and Petitioners with costs borne by the companies except where explicitly ordered against the 3rd and 4th defendants to the Jersey Receivers; no personal costs orders against directors.
Legal Topics
Winding Up, Validation Orders, Appointment of Provisional Liquidators, Receivership, Costs Orders, Party Status
Source Language
EN
Company Law Insolvency Civil Procedure Costs Winding Up Validation Orders Appointment of Provisional Liquidators Receivership +2 more

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Parties

Kevin Roy Mawer

Plaintiff (joint Receiver and Manager)

Richard Dixon Fleming

Plaintiff (joint Receiver and Manager)

Petitioners in HCCW 576/2008 and HCCW 577/2008

Petitioners

Wani Mohamed Hussain

1st Defendant

Aiyer Vembu Subramaniam

2nd Defendant

Dianoor International Limited

3rd Defendant

Dianoor Jewelcraft Limited

4th Defendant

Checkers Limited

5th Defendant

Procedural Posture

Companies Winding Up and Associated Applications / Decision on Costs (post Judgment)

Legal Issues

  1. 1 Whether costs orders should be made personally against directors for validation and provisional liquidator applications
  2. 2 Whether petitioners are entitled to costs of the validation order applications
  3. 3 What order (if any) should be made as to costs in HCMP 789/2008

Ratio Decidendi

Directors who acted under an express exception to oppose winding-up did so on behalf of their companies and were not parties in their personal capacities for purposes of costs; therefore costs of the validation and provisional liquidator applications must be paid by the companies as expenses of liquidation, petitioners and receivers are entitled to their costs, and the Jersey Receivers' costs in HCMP 789 are payable by the companies (3rd and 4th defendants) to the plaintiffs taxed party-and-party.

Court Disposition

Costs allocated largely in favour of the Receivers and Petitioners with costs borne by the companies except where explicitly ordered against the 3rd and 4th defendants to the Jersey Receivers; no personal costs orders against directors.

Orders

  • Validation applications (HCCW 576 and 577 of 2008): Petitioners' and Receivers' costs to be taxed and paid as an expense of the liquidation of the company concerned
  • Appointment of provisional liquidators (all three cases): Receivers' costs to be taxed and paid to the Receivers as an expense of the liquidation of the company concerned