13 Nov 2017
OSMAN MOHAMMED ARAB AND WONG KWOK KEUNG, THE JOINT AND SEVERAL LIQUIDATORS OF KAM TOYS & NOVELTY MANUFACTURING LTD (IN CREDITORS’ VOLUNTARY LIQUIDATION) v. CASHBOX CREDIT SERVICES LTD
- Citation
- OSMAN MOHAMMED ARAB AND WONG KWOK KEUNG, THE JOINT AND SEVERAL LIQUIDATORS OF KAM TOYS & NOVELTY MANUFACTURING LTD (IN CREDITORS’ VOLUNTARY LIQUIDATION) v. CASHBOX CREDIT SERVICES LTD
- Court
- Court of Appeal
- Case number
- CACV67/2017
The appeal was dismissed because the liquidators failed to prove the statutory subjective element under s.266(4) C(WU)O that the company's decision was influenced by a desire to put Cashbox in a better position on insolvent liquidation; although the loan had suspicious features, the company obtained a commercial advantage (working capital and access to the stakeheld deposit), there was no direct or sufficient circumstantial evidence of a desire to prefer Cashbox, and the burden rested on the liquidators to trace application of funds.