The High Court in Lautoka granted a Nadi-based company leave to oppose winding-up proceedings after the presiding judge found that the applicant, a Chinese company, attempted to weaponise the legal action to compel the respondent to make a payment due to it.
In a judgment, Justice Mohamed Azhar granted leave to Amira Furnishings Pte Ltd to oppose a winding-up application filed by Fashion Import & Export Development (Guangzhou) Co Ltd.
Fashion Import & Export Development (Guangzhou) Co Ltd sought to wind up Amira Furnishings Pte Ltd on the grounds that it was insolvent as it failed to satisfy a statutory demand.
Amira Furnishings, represented by its director Mourtada Moussa Makki, filed summons seeking leave to oppose the action.
The court examined affidavits filed by Mr Makki and Aiping Wen, known as Ms Holy, the authorised person for the applicant company.
The affidavits revealed a complex relationship, indicating some kind of arrangement between Ms Holy and her family members and Mr Makki to enter into a joint venture for a retail business specialising in curtains and accessories, which ultimately did not proceed.
Mr Makki claimed Ms Holy became a family friend, cooked for him free of charge, and had access to his computers, even annexing the front page of a loan agreement between Amira Furnishings and the Fiji Development Bank.
The court heard several facts, including Ms Holy stating she was cooking for Mr Makki free of charge and she was not even paid for it.
Ms Holy admitted using the computer of the respondent company, though she stated it was only for the purpose of transferring files of the respondent company (the catalogues).
Justice Azhar observed that the insolvency of the respondent company was not the issue at all for its failure to either set aside the statutory demand or satisfy it within the stipulated time.
He further found Ms Holy attempted to weaponise the winding-up proceedings to compel Mr Makki to pay the amount she claimed to have been due to her from Mr Makki and or the respondent company.
Justice Azhar said he was satisfied that the grounds relied upon by Amira Furnishings were material to prove the company is solvent.
The court granted leave to Amira Furnishings Pte Limited to oppose the proceedings, ordering both parties to bear their own costs.
