RE SUPPLY CHAIN SERVICES LTD

HCCW 11/2003

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF FIRST INSTANCE

COMPANIES (WINDING-UP) NO. 11 OF 2003

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J U D G M E N T

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1. This petition for winding up of Supply Chain Services Ltd ("the Company") was presented by Mr Yip Wai Leung, Jerry on 3 January 2003. The debt in the petition is in the sum of HK$120,000.00, being an amount advanced by the petitioner to the Company on 3 September 2001. Prior to the presentation of the petition, the petitioner had served a demand for the debt on the Company on 12 June 2002.

2. On behalf of the Company, one of the directors, Mr Thomas Chu Yan Chuen, has filed two affirmations in opposition. In his first affirmation, he has alleged that no "formal" agreement was signed in respect of the amount advanced by the petitioner and there was no time agreed for the repayment of the loan. Hence, the petitioner should allow the Company reasonable time to make repayment. He also asserted in his first affirmation that the Company should be able to repay the debt within the "next two weeks".

3. The first affirmation was made on 3 March 2003, two days before the hearing of the petition before a Master. No payment was made by the Company within two weeks of 3 March 2003.

4. In the affirmation in reply filed by the petitioner, he has exhibited the correspondence between the parties which showed that repeated demands for repayment had been made on the Company between December 2001 and June 2002. In the Company's message to the petitioner on 7 November 2002, Mr Chu acknowledged the debt on behalf of the Company and suggested that payment would be made "before 25 November 2002". As stated earlier, no repayment has been made by the Company at any time.

5. In Mr Chu's second affirmation which was filed on 26 March 2003, he deposed that the Company is in the process of seeking a loan from another company known as China Logistics Services Limited ("China Logistics") which has the same address as the business address of Mr Chu in his affirmations filed in court.

6. A letter from China Logistics dated 17 March 2003 was produced by Mr Chu stating that the Company's application for a loan would be discussed at a board meeting around the end of March 2003. Although Mr Chu obtained leave to represent the Company on 24 March 2003, he has not appeared today, nor has he given any further account of the proposal of the Company to seek a loan from China Logistics.

7. It seems to me that quite sufficient time has been given to the Company to repay its debt and as no payment has been made to date, I am not minded to adjourn this petition further.

8. I make a winding-up order against the Company and I order that the petitioner's costs are to be paid out of the Company's assets.