Hong Kong Case Law: Decisions & Judgments

Topic

Secured creditor priority

Legal area

Court

6 Feb 2009

SHIRANNE HOLDINGS LTD v. SKY FOX INVESTMENT LTD

Citation

SHIRANNE HOLDINGS LTD v. SKY FOX INVESTMENT LTD
Court

Court of First Instance
Case number

HCA2126/2008

The stay was refused because the liquidators' offer to deposit any surplus did not adequately enable Shiranne to enforce its equitable lien or obtain the relief sought; the liquidators had not accepted Shiranne's entitlement and made unparticularised fraud allegations, so the dispute required court determination and could not be supplanted by the proposed arrangement.
27 Sept 2001

Re Rhine Jewellery Ltd. (In Liquidation)

Citation

Re Rhine Jewellery Ltd. (In Liquidation)
Court

Court of First Instance
Case number

HCCW511/1998

The court granted sanction because the company was an unsecured creditor at the bottom of the priority hierarchy, IWI was shown to be in poor financial health and subject to a perfected security interest in favour of BACC making full recovery unlikely, so accepting US$70,000 as a compromise was a commercially reasonable exercise of the court's sanctioning power.
6 May 1994

LIM POR YEN v. LAM KUEN LEUNG t/a King Harbour Jewelry Co.

Citation

LIM POR YEN v. LAM KUEN LEUNG t/a King Harbour Jewelry Co.
Court

Court of First Instance
Case number

HCB470/1993

Petitioner failed to discharge the burden of proving that the judgment debt remained unpaid because there was no evidence of any agreement or charge authorising application of repayments or sale proceeds to the separate Lai Sun loan; petitioner had admitted receipt of repayments and sale proceeds which, on the evidence, were sufficient to cover the judgment debt and related personal loans, so the petition based on non-compliance with the Bankruptcy Notice must be dismissed.
2 Jun 1993

DE-ETCO INTERNATIONAL LTD. v. DESIRABLE ENTERPRISE CO. LTD. AND ANOTHER

Citation

DE-ETCO INTERNATIONAL LTD. v. DESIRABLE ENTERPRISE CO. LTD. AND ANOTHER
Court

Court of Appeal
Case number

CACV205/1992

The Court of Appeal allowed the appeal and held that, absent a finding of improper conduct or that it would be unjust, the Official Receiver is entitled to have the costs of the unsuccessful application before Godfrey J. paid from the assets of De-Etco International Limited; the judge below erred in ordering the Official Receiver personally to pay those costs.
25 Apr 1985

RE THE COMPANIES ORDINANCE

Citation

RE THE COMPANIES ORDINANCE
Court

Court of First Instance
Case number

HCCW408/1984

The Hong Kong court had jurisdiction because assets (a ship valued at c. HKD 50,000,000 and a HKD 19,887.65 credit balance) were or would be within the jurisdiction at the hearing; the opposing creditors were not secured because their security was not perfected before the commencement of the Irish winding up; the Irish court's retrospective sanction validated the presentation of the petition; in the exercise of discretion, the court must protect the general body of creditors and therefore a winding up order was appropriate.

Hong Kong Case Law

SHIRANNE HOLDINGS LTD v. SKY FOX INVESTMENT LTD

Re Rhine Jewellery Ltd. (In Liquidation)

LIM POR YEN v. LAM KUEN LEUNG t/a King Harbour Jewelry Co.

DE-ETCO INTERNATIONAL LTD. v. DESIRABLE ENTERPRISE CO. LTD. AND ANOTHER

RE THE COMPANIES ORDINANCE