Re Kwong Hing International (Holdings) Ltd.

Read the full judgment text of on BabelCite. was delivered on 12 November 1999.

1. On 6 October 1999, I made an order that the Petitioner do provide security for the Company's costs in the Petition in the sum of $350,000.00 to be paid into Court within 28 days. The 28 days period expired on 3 November 1999. The order has not been complied with.

Case No.
Court
Date12 Nov 1999
Judge
Case Document
100%Judiciary

HCCW000409A/1999

HCCW409/99

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF FIRST INSTANCE

COMPANIES WINDING UP PROCEEDINGS

NO. 409 OF 1999

____________________

IN THE MATTER of the Companies Ordinance, Cap. 32 of the Laws of Hong Kong

and

IN THE MATTER of KWONG HING INTERNATIONAL (HOLDINGS) LIMITED

____________________

Coram: The Hon. Mr. Justice Sakhrani in Chambers

Date of Hearing: 12 November 1999

Date of Judgment: 12 November 1999

_________________

J U D G M E N T

_________________

1. On 6 October 1999, I made an order that the Petitioner do provide security for the Company's costs in the Petition in the sum of $350,000.00 to be paid into Court within 28 days. The 28 days period expired on 3 November 1999. The order has not been complied with.

2. The Company applies for an unless order, that unless the Petitioner does give security for the Company's costs by paying the sum of $350,000.00 into Court within 7 days from today the Petition shall stand dismissed with costs of the Petition to the Company to be paid by the Petitioner.

3. The Petitioner asks for a further 7 days to make payment of the security for costs into Court but Mr. Kinnison is unable to assure me that payment will in fact be made within a further 7 days. He refers to a letter from Sloma & Co. dated 8 November 1999 addressed to his firm to the effect that application has been made on behalf of the Petitioner for approval of remittance from the Foreign Currency Control in the Mainland. However, approval has not yet been obtained up to the date of the letter due to "the change of the local government policy". No particulars are provided of what the change of the local government policy is. No indication is given in that letter as to when approval might be obtained. That is wholly unsatisfactory in my view.

4. Any winding-up petition against a company is bound to cause prejudice to the company. In the circumstances, I think that the Petitioner should be given some further time to make payment into Court but that in default of the same the Petition shall stand dismissed. I propose to give the Petitioner a further 28 days from today to make payment into Court of the sum of $350,000.00. Unless the said sum is paid into Court by 4:00 p.m. on Friday, 10 December 1999, the Petition shall stand dismissed with costs of the Petition to the Company to be paid by the Petitioner.

5. Costs of this application to be paid by the Petitioner to the Company in any event.

(Arjan H. Sakhrani)
Judge of the Court of First Instance

Representation:

Mr. Kinnison of M/s Holman, Fenwick & Willan for Petitioner

Mr. John Ku of M/s John Ho & Tsui for the Company