1
THE CHINA MAIL, JANUARY 29, 1940
H.K. DAIRY SUPPLY
Page
COMPANY SUED BY QUEENS & ALHAMBRA
G. E. AHWEE
*"THE HONG KONG DAIRY SUPPLY Co., Ltd., is utterly in- volvent and has held on to the property in a desperate attempt to keep itself alive," declared Mr. Eldon Potter, K.C., at the Supreme Court this morning, before Sir Atholl MacGregor, when he appeared for Mr. G. E. Ahwee, of the Kowloon Dairy, against the Hong Kong Dairy Supply Company, Ltd. Mr. Potter and Mr. H. C. Macnar- mara, 'Instructed by Mr. C. C. Blake, of Wilkinson and Grist, are for the plaintiffs and defendants are repre- sented by the Hon. Mr. Leo d'Almada | jr.
to
The plaintiff claims damages for breach of contract, possession of the Kowloon Dairy Farm, mesne profits from May 31. and an injunction restrain defendants from using the trade name and mark of the Kow- Toon Dairy.
Defendants counterclaim for dam- ages for misconduct by the plaintiff during the service agreement.
was
Mr. Potter said that plaintiff the proprietor of the Kowloon Dairy, an old and well-established concern since 1902. He had taken over from his father in 1921.
"CONFLICTING EVIDENCE" When parties are at Joggerheads and can come to no possible agree- ment, serious conflicting evidence may be expected, but Mr. Potter said he was certain he could prove his case up to the hilt, and establish that at all material times, defendant com- pany was insolvent.
In November, 1938, defendants agreed to purchase the Kowloon Dairy as a going concern for $20,000 to be paid in debentures, to purchase all cattle at $450 a head, to pay for the lease and rent of the land at $800 per month, and later at $1,000, and to enter into a service agreement
with plaintiff, as manager of the farm at $500 a month, plus commission on sale of cattle and produce and pro- viding for an increase of 50 per cent. on salary if the herd amounted to over 500 head.
An agreement was drawn up and signed and was to come info force on November 1, 1938.
That is, said Mr. Potter, defendant company entered into possession of the farm before the plaintiff got farthing!
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DEBENTURES NOT ISSUED. The debentures were not issued, and all plaintiff had received to date was
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cash capital.
Next day, a meeting was held at the Bank, those present including Mr. Ahwee, his brother, and Mr. Hugh- Jones, Mr. Edmondston, manager of the Bank, and the accountant, and Mr. M. M. Watson, of Johnson, Stokes and Master, Mr. Fredericks and Mr. Dalziel, director and secretary of de- fendant company, and Mr. R. A.. Wadeson.
Here the Bank confirmed that they would not allow debentures to be. Issued to Mr. Ahwee, The Bank wanted any debentures first; Mr. Ahwee could come next. Mr. Hugh Jones explained that in such an arrangement, Mr. Ahwee would be handing over property as security for a third party's in- debtedness.
Mr. Edmonston then suggested that first debentures be given to Mr. Ahwee and second debentures to the Bank, dependant on defendants raising $50,000 new cash capital.
Mr. Fredericks 'undertook to call a meeting of the shareholders to decide whether they could raise the capital and to notify the Bank of the result.
SEVERAL MEETINGS
midst of such financial difficulties, de- Mr. Potter repeated that in the
fendants pleaded they were at all times willing and able to fulfil their obligations.
Continuing, Mr. Potter said that se- veral meetings between Mr. Dalziel and plaintiff were held, showing the dimculties of the company and seeking a way out.
In order to facilitate things, plaintiff initialled a letter in which he agreed to resign from the, company, reduce the rent of the farm to $500 a month, to leave the Colony, not to associate in a similar business, and to receive a cash payment of $31,500,
Plaintiff was contemplating leaving the Colony if he could obtain cash, and start-clsewhere in Singapore.
On May 11, Mr. Dalziel wrote to plaintiff making a fresh offer. In
$500 as salary and rents to February | place of debentures, he offered 4,000 this year. The rent for March, April | shares in the
company and $10,000
and May was paid on June 21. No- | cash, and he was not to associate him- thing else had been received. De self with a similar business. fendants had occupation of the farm and put into their own coffers every- thing it produced.
This case marked a chapter in the history of broken promises, and it was necessary to go over the events leading to the action.
BANK'S DISCLOSURE
Plaintiff took the letter to his soll- citors who, in turn, wrote to the Bank asking them if they were aware the new offer.
of
that
The Bank's solicitors replied Plaintiff had a mortgage with the the Bank were not willing to grant Chase Bank for $30,000. The bank | further facilities and steps were be- desired it to be paid off. The Honging taken for the company to go into Kong Bank agreed to issue a new liquidation,
The interest due was only $1,500, which defendant had promised to pay, but failed to do.. Either they deliber- ately failed to do so, or they were not financially able.
Defendant was called upon by the Bank in April and was unable to meet the debt.
mortgage for $38,000 and the interest This was the position the company due was to be paid by defendant was in. And they were offering $4,- company to the Chase Bank.
000 shares at $5 per share to plaintiff and a lease for 25 years! Was that honest and fair dealing? asked Mr. Potter.
On May 19, the company, for the purpose of keeping alive, offered for sale every head of cattle.
On May 18, Mr. Blake, on instruc- tions, wrote On April 13, Mr. Dalziel and Mr.out that the
to defendants pointing Ahwee had a meeting at which Mr. seven months earlier and that still-ng agreement was signed Dalziel informed plaintiff that defen- debentures had been issued. dant firm could not Issue any deban- tures as the Hong Kong Bank would sold and breach of contract, and gave not permit as they had an overdraft. defendant four days for settlement
The defence pleaded that they were willing and able to carry out their and for the issue of debentures. They contract but here, said Mr. Potter, were unable to comply.
Plaintiff claimed - $5,000 for goods
In reply to a letter, Messrs. Descons
Mr. Dalziel, secretary of the Company, stated that Instructions had been giv told of the inability of the company en to place the company in voluntary to issue the debentures..
liquidation, stat
*BANK MEETING
Next day, in the offices of Wilkin-
28 COWS AND A BULL
son and Grist, Mr. Dalziel and Mr. Mr. Potter said defendant had been R. H. Wadeson, of Deacons, say ME. in possession since November and had Hugh-Jones and informed him that made what they could, except to pay no debentures 1 could be issued?
that it any
Kon/Bank. into Heuldaflon.
Company
They had sold 23 bull but his client had
and
had written to
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