LI MAN WAI, the trustee of the bankrupt LEUNG KWOK CHUN also known as LIANG GUO JIN also known as LEUNG KWOKCHUN also known as LIANG GUOJIN also known as DANIEL LIANG also known as DANIEL LEUNG also known as LEUNG KWOK CHUN, DANIEL also known as LIANG GUO JIN, DANIEL also known as LEUNG, KWOK CHUN DANIEL also known as LIANG, GUO JIN DANIEL also known as LEUNG, KWOKCHUN DANIEL also known as LAING, GUOJIN, DANIEL (the “Bankrupt”) v. NGAN SUET FONG BONNIE

LI MAN WAI, the trustee of the bankrupt LEUNG KWOK CHUN also known as LIANG GUO JIN also known as LEUNG KWOKCHUN also known as LIANG GUOJIN also known as DANIEL LIANG also known as DANIEL LEUNG also known as LEUNG KWOK CHUN, DANIEL also known as LIANG GUO JIN, DANIEL also known as LEUNG, KWOK CHUN DANIEL also known as LIANG, GUO JIN DANIEL also known as LEUNG, KWOKCHUN DANIEL also known as LAING, GUOJIN, DANIEL (the “Bankrupt”) v. NGAN SUET FONG BONNIE

On the evidence the court found Bonnie to be the sole beneficial owner of the Subject Property; the trustee's statutory claims failed because the pleaded statutory heads did not apply or were inadequately pleaded (no pleaded intention to gift, no pleaded creditor relationship under s.50, no distinct particularity of fraud under CPO s.60) and unpleaded matters relied on by Li could not be used to defeat Bonnie's pleaded case; accordingly Li's claim was dismissed and Bonnie's counterclaim allowing vacatur of the Bankruptcy Order registration succeeded.

Citation
[2021] HKCFI 931
Parties
Plaintiff Trustee in Bankruptcy: Li Man Wai (trustee-in-bankruptcy of Leung Kwok Chun); Defendant Sole Registered Owner of the Subject Property: Ngan Suet Fong Bonnie
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
9 April 2021
Case Number
HCA1333/2018
Procedural Posture
Bankruptcy and Property/conveyancing Dispute / Judgment After Trial
Outcome
Claim dismissed; counterclaim allowed; order that trustee vacate registration of Bankruptcy Order against the Subject Property within 14 days; costs to be paid by plaintiff personally (costs order nisi) with certificate for two counsel, to be taxed party and party if not agreed; liberty to apply.
Legal Topics
Avoidance of Transactions at Undervalue, Preferential Transactions, Fraudulent Conveyance, Express Trust, Pleadings and Evidence, Costs
Source Language
EN
Bankruptcy Property/conveyancing Trusts Civil Procedure Avoidance of Transactions at Undervalue Preferential Transactions Fraudulent Conveyance Express Trust +2 more

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Parties

Li Man Wai (trustee-in-bankruptcy of Leung Kwok Chun)

Plaintiff Trustee in Bankruptcy

Ngan Suet Fong Bonnie

Defendant Sole Registered Owner of the Subject Property

Procedural Posture

Bankruptcy and Property/conveyancing Dispute / Judgment After Trial

Legal Issues

  1. 1 Whether the 2016 Assignment was void as a transaction at undervalue under BO ss.49 and 51 or an unfair preference under s.50
  2. 2 Whether the 2016 Assignment was void for intent to defraud creditors under CPO s.60
  3. 3 Whether Daniel held any beneficial interest in the Subject Property or whether Bonnie was sole beneficial owner (express trust issue)

Ratio Decidendi

On the evidence the court found Bonnie to be the sole beneficial owner of the Subject Property; the trustee's statutory claims failed because the pleaded statutory heads did not apply or were inadequately pleaded (no pleaded intention to gift, no pleaded creditor relationship under s.50, no distinct particularity of fraud under CPO s.60) and unpleaded matters relied on by Li could not be used to defeat Bonnie's pleaded case; accordingly Li's claim was dismissed and Bonnie's counterclaim allowing vacatur of the Bankruptcy Order registration succeeded.

Court Disposition

Claim dismissed; counterclaim allowed; order that trustee vacate registration of Bankruptcy Order against the Subject Property within 14 days; costs to be paid by plaintiff personally (costs order nisi) with certificate for two counsel, to be taxed party and party if not agreed; liberty to apply.

Orders

  • Plaintiff's claim dismissed in its entirety
  • Defendant's counterclaim allowed