Hong Kong Case Law: Decisions & Judgments | LexChat

Topic

Liquidator's undertaking

Legal area

Court

30 Jan 2004

GRAND PACIFIC HOTEL LTD (in Liquidation) v. LEUNG KAI MAN AND OTHERS

Citation

GRAND PACIFIC HOTEL LTD (in Liquidation) v. LEUNG KAI MAN AND OTHERS
Court

Court of First Instance
Case number

HCCW29/2001

On the evidence (cash balance and undertaking) the liquidators rebutted the presumption that the company would be unable to pay the 3rd respondent's costs; the undertaking and priority principle meant there was no basis to order security for costs; liquidator's own legal costs do not have priority over taxed costs awarded to a successful defendant in the liquidation.
20 Mar 1990

EXTRAMONEY LTD AND ANOTHER v. CHAN, LAI, PANG AND CO (a firm)

Citation

EXTRAMONEY LTD AND ANOTHER v. CHAN, LAI, PANG AND CO (a firm)
Court

Court of Appeal
Case number

CACV199/1989

The judge erred in law by failing to take into account that liquidation expenses (including costs awarded against the liquidators) are payable with priority and therefore, on the liquidators' evidence and undertakings, CHL had rebutted the presumption of insolvency for the purposes of s.357; accordingly the discretion to order security against CHL never arose and the order requiring security was set aside. Security against Extramoney was also unnecessary because CHL's assets and the undertakings meant the defendant was adequately protected.