Re Glory Garment Factory

HCB000622/1984

IN BANKRUPTCY

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Coram: The Honourable Mr. Justice Jones in Court

Dates of hearing: 7th & 14th January 1985

Date of delivery of judgment: 14th January 1985

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JUDGMENT

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1. This is an application for a receiving order by two employees of the debtor firm in respect of arrears of wages, severance pay, wages in lieu of notice and annual leave pay.

2. The amount claimed by the petitioners amounts to $20,357.50 for the period from the 15th August 1984 to the 17th September 1984. There are also claims by other employees amounting to $141,216.00.

3. It is alleged that the act of bankruptcy committed by the debtor firm was by one of the partners Lau Chi Wing who on the 24th October 1984 gave verbal notice to the creditors of the firm. that the firm had suspended payment of its debts. An affirmation by the petitioners in support of the allegations contained in the petition was filed on the 6th November 1984.

4. Lau Chi Wing filed an affirmation in opposition to the petition stating that the partnership of the debtor firm was dissolved on the 5th October 1984 and that notice of dissolution was published in the Government Gazette on the 12th October 1984. He also denied that verbal notice had been given that the firm had suspended payment of its debts, but that he had told the petitioners on the 24th October 1984 to settle the matter with the other two partners Poon Yan Cheung and Poon Yan Hing.

5. No application was made to call any evidence at the hearing.

6. The admission made by Lau Chi Wing in his affirmation amounts to an admission of suspension of payment for he was attempting to evade his liability by shifting responsibility to his two partners. However, he is Jointly and severally liable with them for liabilities that accrued whilst he was a partner in the firm.

7. There was no defence to the application which was supported by the Official Receiver.

8. Accordingly there will be a receiving order with costs together with the usual legal aid taxation.

Representation:

Mr. A. J. C. North (Director of Legal Aid) for Petitioner.

Mr. Oliver for Official Receiver.

Mr. H. Cheng (T. S. Tong & Co.) for former partner, Lau Chi Wing.