Re Ka Cheong Building Materials (International) Ltd.

HCCW 75/2001

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF FIRST INSTANCE

COMPANIES (WINDING-UP) PROCEEDINGS NO. 75 OF 2001

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J U D G M E N T

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1. This is an application for the winding-up of a company based on a Labour Tribunal award which was given in September 2000. There was an admission of liability in the principal amount of $104,000.00. The statutory demand was served in November 2000. The petition was presented in January 2001 and with a verifying affidavit in the same month.

2. No affidavit has been filed on behalf of the Company. However, it would appear from the court file that previously it had been suggested that the Company would be able to repay the amount by way of two post-dated cheques of 15 May. Apparently, that has not come to pass.

3. Before me today, it has been argued on behalf of the Company that the court should grant a one-week extension of time because it is hoped that the Company would be able to sell stock in order to come up with the amount owing to the Petitioner. However, for any such sale to be valid, a validation order from the court would be required and Mr Kwok has frankly admitted that the Company would be unlikely to obtain the validation order because the Company is not solvent.

4. In the circumstances, I do not see the purpose of an adjournment in order to enable the Company to do something which might be invalid. Accordingly, I see no grounds why this judgment debt should not be enforced by way of winding-up proceedings and I will make the usual winding-up order.