CHANG STANLEY AND OTHERS v. MAT NG JOINT AND SEVERAL TRUSTEES OF THE PROPERTY OF CHANG STANLEY

CHANG STANLEY AND OTHERS v. MAT NG JOINT AND SEVERAL TRUSTEES OF THE PROPERTY OF CHANG STANLEY

The court sanctioned the trustees' assignment of their causes of action (but not their liabilities) to the applicant under section 43A of the Bankruptcy Ordinance, finding such assignment permissible and in the interests of the administration of the bankruptcy; the applicant was joined as an additional defendant but not substituted for the trustees, and the applicant must satisfy any orders for costs or compensation.

Citation
[2021] HKCFI 3403
Parties
Applicant / Petitioning Creditor: Jotron AS (formerly known as Jotron Electronics AS); Trustees / Respondents: Mat Ng and John Robert Lees, Joint and Several Trustees of the Property of Chang Stanley; Debtor / Bankrupt: Chang Stanley
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
12 November 2021
Case Number
HCA2428/2019
Procedural Posture
Bankruptcy Petition and Related Civil Action HCA 2428/2019 / Application to Sanction Assignment of Trustees' Causes of Action and to Join Applicant as Additional Defendant; Decision Delivered
Outcome
Application to sanction assignment granted in part; applicant joined as additional defendant; substitution of applicant for trustees refused; no order as to costs.
Legal Topics
Assignment of Causes of Action, Section 43 a Bankruptcy Ordinance, Joinder of Parties, Priority of Creditors, Trustees' Powers and Liabilities
Source Language
EN
Bankruptcy Law Civil Procedure Property Law Assignment of Causes of Action Section 43 a Bankruptcy Ordinance Joinder of Parties Priority of Creditors Trustees' Powers and Liabilities

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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 / Respondents

Chang Stanley

Debtor / Bankrupt

Procedural Posture

Bankruptcy Petition and Related Civil Action HCA 2428/2019 / Application to Sanction Assignment of Trustees' Causes of Action and to Join Applicant as Additional Defendant; Decision Delivered

Legal Issues

  1. 1 Whether trustees can assign their causes of action under section 43A of the Bankruptcy Ordinance
  2. 2 Whether the court should sanction the proposed assignment to the applicant
  3. 3 Whether the assignee can be substituted for the trustees as defendant and whether trustees' liabilities can be assigned

Ratio Decidendi

The court sanctioned the trustees' assignment of their causes of action (but not their liabilities) to the applicant under section 43A of the Bankruptcy Ordinance, finding such assignment permissible and in the interests of the administration of the bankruptcy; the applicant was joined as an additional defendant but not substituted for the trustees, and the applicant must satisfy any orders for costs or compensation.

Court Disposition

Application to sanction assignment granted in part; applicant joined as additional defendant; substitution of applicant for trustees refused; no order as to costs.

Orders

  • Sanction 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 pleaded in the Defence and Counterclaim in HCA 2428 of 2019.
  • Deliver 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 to the Applicant's solicitors, Messrs. Ernest Li & Co., upon execution of the Deed of Assignment.