Hong Kong Case Law: Decisions & Judgments

Topic

Debenture

Legal area

Court

4 Dec 2014

BASAB INC AND ANOTHER v. SUPERB GLORY HOLDINGS LTD AND OTHERS

Citation

BASAB INC AND ANOTHER v. SUPERB GLORY HOLDINGS LTD AND OTHERS
Court

Court of First Instance
Case number

HCA6/2014

The court struck out the plaintiffs' claims against the 1st and 2nd defendants because the losses alleged derive from the diminution of Accufit's interest (the sale at undervalue of KHL shares) and are therefore reflective of the company's loss; the same causes of action were available to Accufit on the pleaded facts, so the plaintiffs' personal claims are barred by the reflective loss principle and must be dismissed.
5 Nov 2014

RE THE GRANDE HOLDINGS LTD

Citation

RE THE GRANDE HOLDINGS LTD
Court

Court of First Instance
Case number

HCCW177/2011

On a broad macroscopic assessment the audit confirmation together with the 31 December 2010 debenture and the provisional liquidators' acceptance that Gain Alpha advanced the funds established a probable entitlement to the sum claimed; the creditor's proof was therefore to be admitted for voting in the amount claimed (US$7,902,154.04) and the liquidators were not entitled at this stage to require further primary proof such as bank statements.
20 Dec 2013

GEODESIC TECHNOLOGY SOLUTIONS LTD v. AXIS BANK LTD

Citation

GEODESIC TECHNOLOGY SOLUTIONS LTD v. AXIS BANK LTD
Court

Court of First Instance
Case number

HCMP2287/2013

The March 2011 debenture was a self‑standing continuing all‑monies security binding on the plaintiff and was not discharged or excluded by the executed May 2012 letter, which constituted a renewal/continuation of existing facilities rather than a standalone replacement; therefore the debenture remained effective and the defendant validly appointed receivers and managers; the originating summons is dismissed and costs are awarded to the defendant.
3 Feb 2010

WONG SUN KEUNG AND ANOTHER v. LABOUR BUILDINGS LTD AND OTHERS

Citation

WONG SUN KEUNG AND ANOTHER v. LABOUR BUILDINGS LTD AND OTHERS
Court

Court of First Instance
Case number

HCMP2544/2009

The court found that on the evidence LBL was indebted to Winland as at the date of hearing and therefore the receivers had been properly appointed and possessed the necessary powers under the debenture to carry out the acts sought; accordingly the application by the receivers was granted and costs were ordered to be paid out of LBL's assets. The deed provision relied upon did not conclusively negate Winland's remaining claims.
9 Sept 2009

RE CHINA MEDICAL AND BIO SCIENCE LTD

Citation

RE CHINA MEDICAL AND BIO SCIENCE LTD
Court

Court of First Instance
Case number

HCCW198/2008

Validation granted because the restructuring was supported by creditors representing an overwhelming majority of known liabilities, the SPV's assets and the debenture would be funded by the lender without encumbering company assets, the working capital contribution was small and unsecured, liquidation would likely yield nil to unsecured creditors, and the petitioner offered no intelligible reason to insist on immediate winding up.
26 Feb 2009

THE BANK OF EAST ASIA, LTD v. LABOUR BUILDINGS LTD AND OTHERS

Citation

THE BANK OF EAST ASIA, LTD v. LABOUR BUILDINGS LTD AND OTHERS
Court

Court of Appeal
Case number

CACV33/2008

The application for leave to appeal to the Court of Final Appeal was dismissed because the applicant failed to show a real difference in interest outcomes warranting s22(1)(a) certification and failed to identify questions of general or public importance under s22(1)(b); the estoppel issue did not present a novel public law question as pleaded and was correctly treated as a defence mechanism rather than a sword to create a cause of action.
18 Nov 2008

THE BANK OF EAST ASIA, LTD v. LABOUR BUILDINGS LTD AND OTHERS

Citation

THE BANK OF EAST ASIA, LTD v. LABOUR BUILDINGS LTD AND OTHERS
Court

Court of Appeal
Case number

CACV33/2008

The Court held the EGM of 26 November 1997 was validly convened and the special resolution effectively removed the proviso in Regulation 81 thereby validating the borrowing; there was insufficient proof that the 17 September 1999 board minute was forged and, in any event, the company's conduct, payments and contractual documents estopped the defendants from denying authority; consequently the debentures and mortgage were valid and enforceable and the appeal was dismissed.
18 Jun 2008

THE BANK OF EAST ASIA, LTD v. LABOUR BUILDINGS LTD AND OTHERS

Citation

THE BANK OF EAST ASIA, LTD v. LABOUR BUILDINGS LTD AND OTHERS
Court

Court of Appeal
Case number

CACV33/2008

The stay was refused because the applicant produced no credible evidence that the purchaser could or would complete the HK$160m purchase; the application was aimed at extracting more sale proceeds rather than preserving the asset; the bank was likely to obtain the maximum price and there were material uncertainties (eg licence transfers) that made the proposed transaction unreliable, so interference with enforcement was unjustified.
26 May 2008

THE BANK OF EAST ASIA, LTD v. LABOUR BUILDINGS LTD AND OTHERS

Citation

THE BANK OF EAST ASIA, LTD v. LABOUR BUILDINGS LTD AND OTHERS
Court

Court of Appeal
Case number

CACV33/2008

The application for a further stay was refused because the defendants failed to adduce credible, specific evidence of realistic refinancing or adequate security to protect the plaintiff's position; the evidence before the court was speculative and suggested funds derived from a third party, so payment should not be deferred further.
25 Sept 2007

THE BANK OF EAST ASIA, LTD v. LABOUR BUILIDNGS LTD AND OTHERS

Citation

THE BANK OF EAST ASIA, LTD v. LABOUR BUILIDNGS LTD AND OTHERS
Court

Court of First Instance
Case number

HCMP769/2002

Paragraph 38, read in the context of the pleadings, adequately pleads a restitution claim based on unjust enrichment and total failure of consideration; the pleading is spare but not so obviously or unarguably bad as to warrant summary striking out under O.18 r.19, therefore the strike out application was dismissed.