RE CHECKERS LTD

RE CHECKERS LTD

Directors who acted on behalf of the companies under an express exception to restraint orders were not parties in their personal capacity and therefore no personal costs orders should be made against Mr Aiyer and Mr Wani; costs of the validation order and provisional liquidator applications are to be taxed and paid by the companies as liquidation expenses; Petitioners are entitled to costs of the validation order applications; costs of HCMP 789 are to be paid by the 3rd and 4th Defendants to the Jersey Receivers and taxed on a party and party basis if not agreed.

Citation
RE CHECKERS LTD
Parties
Plaintiffs (joint Receivers and Managers of the I.m.k. Family Trust): Kevin Roy Mawer and Richard Dixon Fleming; 1st Defendant / Director: Wani Mohamed Hussain; 2nd Defendant / Director: Aiyer Vembu Subramaniam; 3rd Defendant / Company (subject of HCCW 576/2008): Dianoor International Limited; 4th Defendant / Company (subject of HCCW 577/2008): Dianoor Jewelcraft Limited; 5th Defendant / Company (subject of HCCW 27/2009): Checkers Limited; Petitioners: The Petitioners in HCCW 576/2008 and HCCW 577/2008
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
15 June 2012
Case Number
HCCW27/2009
Procedural Posture
Companies Winding Up and Related Applications (validation Orders; Appointment of Provisional Liquidators; Continuation of Receivership) / Decision on Costs Following Judgment Dated 23 December 2009 (costs Decision Dated 15 June 2012)
Outcome
Costs orders made largely in favour of the Receivers and Petitioners with costs to be borne by the companies except for HCMP 789 where costs are payable by the 3rd and 4th Defendants to the Jersey Receivers.
Legal Topics
Winding Up, Validation Orders, Provisional Liquidators, Receivership, Costs Orders, Party Status for Costs
Source Language
EN
Company Law Insolvency Law Civil Procedure Costs Winding Up Validation Orders Provisional Liquidators Receivership +2 more

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Parties

Kevin Roy Mawer and Richard Dixon Fleming

Plaintiffs (joint Receivers and Managers of the I.m.k. Family Trust)

Wani Mohamed Hussain

1st Defendant / Director

Aiyer Vembu Subramaniam

2nd Defendant / Director

Dianoor International Limited

3rd Defendant / Company (subject of HCCW 576/2008)

Dianoor Jewelcraft Limited

4th Defendant / Company (subject of HCCW 577/2008)

Checkers Limited

5th Defendant / Company (subject of HCCW 27/2009)

The Petitioners in HCCW 576/2008 and HCCW 577/2008

Petitioners

Procedural Posture

Companies Winding Up and Related Applications (validation Orders; Appointment of Provisional Liquidators; Continuation of Receivership) / Decision on Costs Following Judgment Dated 23 December 2009 (costs Decision Dated 15 June 2012)

Legal Issues

  1. 1 Whether costs should be ordered against the directors (Mr Aiyer and Mr Wani) personally for validation order applications and provisional liquidator applications after 17 February 2009
  2. 2 Whether the Petitioners are entitled to costs of the validation order applications
  3. 3 What order should be made as to costs in HCMP 789 of 2008 (continuation of appointment of the Receivers)

Ratio Decidendi

Directors who acted on behalf of the companies under an express exception to restraint orders were not parties in their personal capacity and therefore no personal costs orders should be made against Mr Aiyer and Mr Wani; costs of the validation order and provisional liquidator applications are to be taxed and paid by the companies as liquidation expenses; Petitioners are entitled to costs of the validation order applications; costs of HCMP 789 are to be paid by the 3rd and 4th Defendants to the Jersey Receivers and taxed on a party and party basis if not agreed.

Court Disposition

Costs orders made largely in favour of the Receivers and Petitioners with costs to be borne by the companies except for HCMP 789 where costs are payable by the 3rd and 4th Defendants to the Jersey Receivers.

Orders

  • Validation applications (HCCW 576 and 577 of 2008): Petitioners' and the Receivers' costs of the validation applications to be taxed and paid to the Petitioners and the Receivers respectively as an expense of the liquidation of the company concerned.
  • Appointment of provisional liquidators (HCCW 576, 577 of 2008 and HCCW 27 of 2009): the Receivers' costs of the applications are to be taxed and paid to the Receivers as an expense of the liquidation of the company concerned.