Read the full judgment text of on BabelCite. was delivered on 31 January 2002 before Bokhary PJ, Chan PJ, Ribeiro PJ, Nazareth NPJ, Brennan NPJ.
Civil procedure – costs – Court of Final Appeal – Official Receiver as provisional liquidator – locus standi of wound-up company to pursue appeal after temporary stay of winding-up – respondents' pre-hearing communications indicating intention to challenge locus – respondents at hearing disclaiming any challenge – wasted costs of Official Receiver's attendance by counsel – whether respondents should pay Official Receiver's costs on indemnity basis – winding-up order against Kensland Realty Limited – charging order absolute over company's only asset – order nisi for costs against company in favour of 1st and 2nd Respondents – temporary stay of winding-up proceedings under section 209 Companies Ordinance pending appeal – whether Official Receiver's costs of attending hearing to argue preliminary locus point should be paid by respondents – holding that respondents had compelled the Official Receiver to instruct counsel and attend by consistently signalling intent to challenge locus, but at hearing disclaimed any such challenge, rendering the OR's costs entirely wasted – respondents ordered jointly and severally to pay the OR's costs on an indemnity basis, taxed if not agreed – whether Court of Final Appeal can make orders as to priority of costs in winding-up – holding that Court is concerned only with costs of the appeal and has no jurisdiction to make priority orders in the winding-up – Whale View's request for priority of its costs over general costs of liquidation dismissed.
Legal issues: Whether Official Receiver's costs of attending hearing on locus standi question should be paid by the respondents · Whether Whale View's request for priority of its costs over general costs of liquidation should be granted
Outcome: The 1st and 2nd Respondents are ordered jointly and severally to pay the Official Receiver's costs of and occasioned by attendance by counsel at the hearing on 9 October 2001 in connection with the locus standi question, on an indemnity basis; Whale View's separate application for priority of costs in the winding-up is dismissed.