Hong Kong Case Law: Decisions & Judgments

Topic

Statutory demand (s.178)

Legal area

Court

7 Sept 2023

RE WING TAK LEE FINANCE LTD

Citation

[2023] HKCFI 2308
Court

Court of First Instance
Case number

HCCW112/2023

The court found no bona fide dispute on the debt: the agreements were entered into by a director with actual or ostensible authority, payments and contemporaneous documents established the sums due, the statutory demand was not complied with and therefore the company was deemed unable to pay its debts; allegations of unlicensed money‑lending and breach of fiduciary duty were unsubstantiated on the material before the court and did not defeat the petition.
2 Apr 2020

RE GW ELECTRONICS CO LTD

Citation

[2020] HKCA 180
Court

Court of Appeal
Case number

CACV24/2017

The Court of Appeal held that TEAL validly terminated the distribution agreement in the face of the Company's insolvency; the sums claimed were liquidated and sufficiently ascertainable under the contract and supporting documents; there was no bona fide dispute on substantial grounds as to liability or quantum because contemporaneous documents and commercial common sense contradicted the alleged oral settlement; accordingly the strike‑out was rightly refused and the winding‑up order was properly made (though stayed pending appeal submissions).
8 Nov 1996

In re ICS Computer Distribution Ltd. (formerly known as Cheflink Ltd.)

Citation

In re ICS Computer Distribution Ltd. (formerly known as Cheflink Ltd.)
Court

Court of Appeal
Case number

CACV95/1996

The Court held the appellant failed to demonstrate that its cross-claims were bona fide and supported on substantial grounds; contemporaneous written admissions, confirmations and the Statement of Affairs established substantial indebtedness and, coupled with non-compliance with the statutory demand, justified the winding-up order; the judge's exercise of discretion to wind up the company was unassailable.
7 Jul 1980

RE INTERASIAN TRADERS FINANCE LTD

Citation

RE INTERASIAN TRADERS FINANCE LTD
Court

Court of First Instance
Case number

HCCW56/1980

Documents before the court (Letter of Agreement dated 19 Dec 1978 and the personal guarantee) unequivocally established that the company acknowledged indebtedness as principal; the asserted grounds of dispute (agency/brokerage and a collateral undertaking) were not supported by the documents and did not extinguish the petitioner's right to proceed; therefore there were no substantial grounds to dispute the debt and a winding-up order was properly made.

Hong Kong Case Law

RE WING TAK LEE FINANCE LTD

RE GW ELECTRONICS CO LTD

In re ICS Computer Distribution Ltd. (formerly known as Cheflink Ltd.)

RE INTERASIAN TRADERS FINANCE LTD