XCHRX THE JOINT AND SEVERAL LIQUIDATORS OF HANGLY METAL BUTTON & BUCKLE FACTORY LTD. (IN LIQUIDATION) v. CHUN TAT METAL LTD.

HCCW 773/2000

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF FIRST INSTANCE

COMPANIES (WINDING-UP) NO. 773 OF 2000

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D E C I S I O N

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1. I have before me an application made by the joint and several liquidators of Hangly Metal Button & Buckle Factory Limited ("the Company") pursuant to section 182 of the Companies Ordinances Cap. 2. The liquidators seek a declaration that the payment of HK$118,376.00 by the Company to the respondent Chun Tat Metal Limited ("Chun Tat") made since the commencement of the winding-up of the Company is void under that provision.

2. The winding up order was made on 8 November 2000 on the petition of the Director of Legal Aid presented to the Court on 28 August 2000 and the petition was served on the Company on the same date. Under section 184(2) of the Companies Ordinance, the winding-up of a company by the Court is deemed to commence at the time of presentation of the petition.

3. The petition was advertised on 15 September 2000. The payment in question was made by the Company to Chun Tat by a cheque issued on 15 September 2000 and was presented for payment on 21 September 2000.

4. This disposition is caught by section 182. Mr Au Chiu, a director of Chun Tat, informed the Court at this hearing that Chun Tat does not oppose the liquidators' application. In the circumstances, I make an order as sought by the liquidators in their summons declaring that the payment of the sum in question by the Company to Chun Tat is void under section 182 of the Companies Ordinance.

5. I further order that Chun Tat is to pay HK$118,376.00 to the liquidators of the Company within eight weeks hereof. As for the question of costs, having heard submissions from Mr Au and the liquidators' solicitor, I am of the view that Chun Tat should pay reasonable costs of the liquidators' solicitors for this application. I make an order on a gross sum basis that Chun Tat is to pay the liquidators the sum of HK$5,000.00 towards their costs.