Re Orienmet Properties Co. Ltd.

HCMP 2944/2002

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF FIRST INSTANCE

MISCELLANEOUS PROCEEDINGS NO. 2944 OF 2002

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J U D G M E N T

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1. This is an application taken out by the receivers of a property at 8th Floor, No. 118 Connaught Road West, Hong Kong ("the Property") for an order that they may be at liberty to sell the chattels found in the Property and apply the proceeds towards partial discharge of the indebtedness of the mortgagor, Orienmet Properties Company Limited ("Orienmet") to the mortgagee bank, the Bank of China (Hong Kong) Limited. The application is made under section 298A of the Companies Ordinance, Cap. 32, by way of an Originating Summons.

2. The Originating Summons was served at the registered office of Orienmet by leaving the same at its registered office on 31 July 2002. No response has been received and Orienmet has not appeared today. In addition, copies of the Originating Summons were also sent to all the directors of Orienmet by ordinary and registered post at their addresses as given in the annual return filed with the Companies Registry.

3. I understand from the applicant's solicitors that of the four directors, the mail sent to three of them had been returned by the Post Office through the Dead Letters Service on 2 September 2002. The Originating Summons was also served on the company secretary and a fax was received from her on 30 August 2002 stating that she had resigned from her position on 1 August 2002, which was after the posting of the Originating Summons to her.

4. The receivers were appointed by the mortgagee bank on 10 May 2002 pursuant to clause 8.02 of the mortgage, as Orienmet was in default of payment of a term loan granted to it. The indebtedness at the end of 2001 was over HK$51,000,000.00. The receivers inspected the Property on 16 May 2002 and found that no one was occupying the Property. There were chattels left inside. Notices were left on the premises by the receivers on 16 May 2002 and 24 May 2002 giving notice that all chattels left in the Property must be removed, and in any event not later than 7 days from 24 May 2002.

5. On 29 May 2002, letters were sent by the receivers to Orienmet, the directors and the company secretary, asking them to collect the chattels within 30 days from the date of the letters. On 5 July 2002, the receivers placed an advertisement in an English newspaper and a Chinese newspaper, again requesting Orienmet to collect the chattels within 7 days of the notices. No response whatsoever was received from Orienmet despite the notices, letters and advertisements. On 3 August 2002, the receivers went to the Property and found that the chattels were still left in the premises. I am satisfied that the chattels have been abandoned by the occupier.

6. In the circumstances, it would be appropriate to make an order sought by the receivers. I make the following orders:-

(1) the applicant is to be at liberty to sell or otherwise dispose of all chattels, furniture and documents found in the Property;

(2) the applicant's costs of this application be paid out of the proceeds of sale of the chattels in the Property, to be taxed if not agreed;

(3) the balance of the proceeds of sale of the chattels be applied to discharge the indebtedness of Orienmet to the Bank of China (Hong Kong) Limited; and

(4) there be liberty to apply.