RE STANLEY CHANG t/a HONG INSTECH TRADING CO.

RE STANLEY CHANG t/a HONG INSTECH TRADING CO.

The court sanctioned the assignment of the trustees' causes of action (under section 43A of the Bankruptcy Ordinance and as pleaded in the Defence and Counterclaim in HCA 2428/2019) to the applicant, on the basis that causes of action are assignable and the trustees consented; the applicant was joined as an additional defendant but not substituted in place of the trustees because the court was not satisfied plaintiffs had no specific claims against the trustees.

Citation
[2021] HKCFI 3403
Parties
Applicant (petitioning Creditor): Jotron AS (formerly known as Jotron Electronics AS); Trustees / Respondent: Mat Ng and John Robert Lees, Joint and Several Trustees of the Property of Chang Stanley; Debtor / Bankrupt / Plaintiff in HCA 2428/2019: Chang Stanley; Creditor: Inland Revenue Department; Creditor: Orix Asia Limited; Plaintiffs: Plaintiffs in HCA 2428/2019 (including Stanley Chang)
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
12 November 2021
Case Number
HCB1454/2015
Procedural Posture
Bankruptcy Petition and Related Civil Action / Interlocutory Application to Sanction Assignment and Joinder (application to Sanction Assignment Under Section 43 a of the Bankruptcy Ordinance)
Outcome
Assignment sanctioned; applicant joined as additional defendant; substitution refused; ancillary orders made regarding title deeds and liabilities; no order as to costs.
Legal Topics
Assignment of Cause of Action, Sanction of Assignment Under Section 43 a Bankruptcy Ordinance, Joinder of Defendant, Priority of Creditors, Trustees' Liabilities Vs Rights
Source Language
EN
Bankruptcy Civil Procedure Property Law Assignment of Rights Assignment of Cause of Action Sanction of Assignment Under Section 43 a Bankruptcy Ordinance Joinder of Defendant Priority of Creditors +1 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 2 Authorities cited 1 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Parties

Jotron AS (formerly known as Jotron Electronics AS)

Applicant (petitioning Creditor)

Mat Ng and John Robert Lees, Joint and Several Trustees of the Property of Chang Stanley

Trustees / Respondent

Chang Stanley

Debtor / Bankrupt / Plaintiff in HCA 2428/2019

Inland Revenue Department

Creditor

Orix Asia Limited

Creditor

Plaintiffs in HCA 2428/2019 (including Stanley Chang)

Plaintiffs

Procedural Posture

Bankruptcy Petition and Related Civil Action / Interlocutory Application to Sanction Assignment and Joinder (application to Sanction Assignment Under Section 43 a of the Bankruptcy Ordinance)

Legal Issues

  1. 1 Whether trustees can assign causes of action and whether such assignment can be sanctioned by the court under section 43A of the Bankruptcy Ordinance
  2. 2 Whether trustees can assign away their liabilities or be struck out as defendants after assignment
  3. 3 Whether the applicant should be substituted in place of the trustees or merely joined as an additional defendant

Ratio Decidendi

The court sanctioned the assignment of the trustees' causes of action (under section 43A of the Bankruptcy Ordinance and as pleaded in the Defence and Counterclaim in HCA 2428/2019) to the applicant, on the basis that causes of action are assignable and the trustees consented; the applicant was joined as an additional defendant but not substituted in place of the trustees because the court was not satisfied plaintiffs had no specific claims against the trustees.

Court Disposition

Assignment sanctioned; applicant joined as additional defendant; substitution refused; ancillary orders made regarding title deeds and liabilities; no order as to costs.

Orders

  • Order sanctioning the assignment from the Trustees to the Applicant of the Trustees' cause(s) of action under section 43A of the Bankruptcy Ordinance and the cause(s) of action as pleaded in the Defence and Counterclaim in HCA 2428 of 2019.
  • The title deeds of Flat No.46 on 4th Floor of Sau Lam House (Block 2), Tsui Lam Estate, No.11 Tsui Lam Road, Tseung Kwan O, New Territories, Hong Kong be delivered to the Applicant's solicitors Messrs. Ernest Li & Co. upon execution of the Deed of Assignment.