RE WONG TAK WA PARTAK

RE WONG TAK WA PARTAK

Extrinsic evidence of the alleged agency and arrangement was admissible for the limited purpose of raising an illegality defence under the securities statutes; on the affidavits a bona fide dispute on substantial grounds existed about whether the debtor was merely a nominee and whether the petitioner knew or consented to the arrangement, so the petition must be dismissed pending trial or further proceedings.

Citation
RE WONG TAK WA PARTAK
Parties
Petitioner / Plaintiff: National Resources Securities Limited; Debtor: Wong Tak Wa Partak
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
4 October 2002
Case Number
HCB4810/2002
Procedural Posture
Bankruptcy Petition / Hearing on Petition — Judgment (court of First Instance)
Outcome
Petition dismissed; order nisi for costs to the debtor; order nisi to be made absolute 14 days after judgment if not opposed
Legal Topics
Agency Defence, Illegality Defence, Admissibility of Extrinsic Evidence, Market Manipulation / False Market (s135 Cap.333), Insider Dealing (s9 Cap.395), Disclosure of Interests (s28 Cap.396), Bona Fide Dispute Test in Bankruptcy
Source Language
EN
Bankruptcy Contract Securities Regulation Agency Law Illegality / Public Policy Agency Defence Illegality Defence Admissibility of Extrinsic Evidence +4 more

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Parties

National Resources Securities Limited

Petitioner / Plaintiff

Wong Tak Wa Partak

Debtor

Procedural Posture

Bankruptcy Petition / Hearing on Petition — Judgment (court of First Instance)

Legal Issues

  1. 1 Whether debtor was agent/nominee for third party and therefore not personally liable
  2. 2 Whether the account agreement is unenforceable for illegality because it facilitated market manipulation or breaches of securities disclosure/insider dealing laws
  3. 3 Whether extrinsic evidence of agency is admissible despite written agreement

Ratio Decidendi

Extrinsic evidence of the alleged agency and arrangement was admissible for the limited purpose of raising an illegality defence under the securities statutes; on the affidavits a bona fide dispute on substantial grounds existed about whether the debtor was merely a nominee and whether the petitioner knew or consented to the arrangement, so the petition must be dismissed pending trial or further proceedings.

Court Disposition

Petition dismissed; order nisi for costs to the debtor; order nisi to be made absolute 14 days after judgment if not opposed

Orders

  • Petition dismissed
  • Order nisi that costs of the petition be to Mr Wong Tak Wa Partak, to be taxed if not agreed