Re Days International Ltd

Read the full judgment text of HCCW 299/2011 on BabelCite. This High Court CFI judgment was delivered on 14 July 2017.

1. On 18 June 2014 Global Empire Limited issued a summons seeking to reverse the liquidators’ decision dated 28 May 2014 rejecting Global Empire’s proof of debt lodged on 29 November 2012 for approximately HK$419,645,000. The circumstances in which Global Empire suggested that this debt was owed to it are explained in my decision dated 11 November 2013.

Cited by 17 cases

Case No.HCCW 299/2011
Court
High Court CFI
Date14 Jul 2017
Judge
Case Document
100%Judiciary

HCCW 299/2011

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF FIRST INSTANCE

COMPANIES WINDING‑UP PROCEEDINGS NO 299 OF 2011

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  In the matter of Days International Limited
  and
  In the matter of the Companies Ordinance, Chapter 32 of the laws of Hong Kong

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Before: Hon Harris J in Chambers
Date of Hearing: 14 July 2017
Date of Decision: 14 July 2017

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D E C I S I O N

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1.On 18 June 2014 Global Empire Limited issued a summons seeking to reverse the liquidators’ decision dated 28 May 2014 rejecting Global Empire’s proof of debt lodged on 29 November 2012 for approximately HK$419,645,000. The circumstances in which Global Empire suggested that this debt was owed to it are explained in my decision dated 11 November 2013.

2.To cut a relatively complex story short, Global Empire’s claim relates to an alleged assignment of debt to it by the Dayarams in connection with a company called Days International Limited.  The Dayarams were charged and convicted of fraud in relation to the affairs of the company and in particular the circumstances in which the alleged debt was created. 

3.As my earlier decision explains, the circumstances in which it is suggested that Global Empire came to acquire the debt and indeed the genuineness of the debt itself are, to put it at its lowest, highly questionable and given the conviction of the Dayarams and the failure of their subsequent appeal, it is quite clear that the suggestion that Global Empire is owed any money by the company as a result of the assignment is bound to fail.

4.As a consequence, Global Empire has agreed to withdraw its summons appealing the liquidators’ decision and pay the costs, the only issue is whether or not the costs should be paid on an indemnity basis as the liquidators seek.  It seems to me to be quite clear that Global Empire’s appeal of the liquidators’ decision was pure chutzpah and it had no realistic prospect of success and should never have been brought.  I will therefore order that the costs are assessed on an indemnity basis.

  (Jonathan Harris)
Judge of the Court of First Instance
High Court

Mr David Chen, instructed by Allen & Overy, for the provisional liquidators

Mr Justin Lam, instructed by Oldham, Li & Nie, for Global Empire Limited