CHEN YUNG NGAI KENNETH AND ANOTHER v. CHINA MERCHANTS BANK CO LTD

CHEN YUNG NGAI KENNETH AND ANOTHER v. CHINA MERCHANTS BANK CO LTD

The court found that the trustees had established a reasonable suspicion that the Million Nice account was a corporate vehicle used to move funds connected to the bankrupt’s dealings (supported by documentary links from other productions), the documents sought relate to the bankrupt’s dealings or property and are reasonably required for the trustees to carry out their functions, and the bank possessed the requested records; accordingly a section 29 order requiring production of account opening records and transactional documents for the Million Nice Account was justified and granted with limited scope and a 45‑day compliance period.

Citation
[2023] HKCFI 2786
Parties
Applicant (trustee‑in‑bankruptcy): CHEN YUNG NGAI KENNETH; Applicant (trustee‑in‑bankruptcy): CHAN MEI MEI; Respondent (bank): CHINA MERCHANTS BANK CO., LTD.
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
31 October 2023
Case Number
HCB3819/2011
Procedural Posture
Bankruptcy Proceedings / Application for Disclosure Under Section 29 Bankruptcy Ordinance — Decision on Summons (chambers)
Outcome
Section 29 order granted requiring CMB to produce account opening records and transactional documents for the Million Nice Account within 45 days
Legal Topics
Disclosure, Section 29 Bankruptcy Ordinance, Trustees' Investigatory Powers, Nominee Transactions, Bank Account Production Orders
Source Language
EN
Bankruptcy Civil Procedure Banking Law Asset Tracing Trusts and Trustees Disclosure Section 29 Bankruptcy Ordinance Trustees' Investigatory Powers +2 more

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Parties

CHEN YUNG NGAI KENNETH

Applicant (trustee‑in‑bankruptcy)

CHAN MEI MEI

Applicant (trustee‑in‑bankruptcy)

CHINA MERCHANTS BANK CO., LTD.

Respondent (bank)

Procedural Posture

Bankruptcy Proceedings / Application for Disclosure Under Section 29 Bankruptcy Ordinance — Decision on Summons (chambers)

Legal Issues

  1. 1 Whether the court should order the bank to produce account opening records and transactional documents relating to the Million Nice account under section 29 BO
  2. 2 Whether the trustees have demonstrated the required standard of reasonable suspicion that the Million Nice account relates to the bankrupt’s dealings or property
  3. 3 Whether the requested documents are reasonably required for the trustees to perform their functions and are within the bank’s custody or power

Ratio Decidendi

The court found that the trustees had established a reasonable suspicion that the Million Nice account was a corporate vehicle used to move funds connected to the bankrupt’s dealings (supported by documentary links from other productions), the documents sought relate to the bankrupt’s dealings or property and are reasonably required for the trustees to carry out their functions, and the bank possessed the requested records; accordingly a section 29 order requiring production of account opening records and transactional documents for the Million Nice Account was justified and granted with limited scope and a 45‑day compliance period.

Court Disposition

Section 29 order granted requiring CMB to produce account opening records and transactional documents for the Million Nice Account within 45 days

Orders

  • Respondent to produce within 45 days of service all account opening records and documents in its possession, power and/or custody relating to the Million Nice Account from account opening date to present
  • For the purpose of the Order, "documents" includes records/forms identifying the beneficial owner(s) and/or authorized signatory(ies) provided by the account holder and records of all transactions including bank statements, bank vouchers, forms, instructions, transaction advices, cheques and correspondence issued by...