CHEN YUNG NGAI KENNETH AND ANOTHER v. CHONG HING BANK LTD AND OTHERS

CHEN YUNG NGAI KENNETH AND ANOTHER v. CHONG HING BANK LTD AND OTHERS

The Trustees demonstrated reasonable grounds to suspect that the specified accounts related to the bankrupt or his nominees and that the account opening records and transaction documents were reasonably necessary for the Trustees' functions; accordingly production orders under s29 BO were appropriate in respect of certain accounts. However, as a general rule account holders should be given notice or be joined unless exceptional circumstances exist; absent such circumstances the court will require notice before making orders. Applying those principles, production orders were granted against Chong Hing Bank (APIDL account) and HSBC (accounts of Guan Qiao Ling and Zhao Jian Hong for...

Citation
[2023] HKCFI 826
Parties
Applicant (trustee in Bankruptcy): Chen Yung Ngai Kenneth; Applicant (trustee in Bankruptcy): Chan Mei Mei; 1st Respondent (bank): Chong Hing Bank Limited; 2nd Respondent (bank): The Hongkong and Shanghai Banking Corporation Limited; 3rd Respondent (bank): China Merchants Bank Co., Ltd.; 4th Respondent (bank): CMB Wing Lung Bank Limited; 5th Respondent (bank): Bank of China (Hong Kong) Limited; 6th Respondent (bank): Standard Chartered Bank (Hong Kong) Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
20 March 2023
Case Number
HCB3819/2011
Procedural Posture
Bankruptcy Proceedings / Application for Production of Bank Documents Under Section 29 Bankruptcy Ordinance — Decision on Production and Notice
Outcome
Production orders granted in part, refused in part, and other applications adjourned sine die with liberty to restore within 2 months to enable notice to account holders
Legal Topics
Disclosure Orders, Section 29 Bankruptcy Ordinance, Nominee and Beneficial Ownership, Litigation Funding, Bank Account Production, Service and Notice to Third Parties, Confidentiality and Professional Secrecy
Source Language
EN
Bankruptcy Insolvency Civil Procedure Banking Law Company Law Disclosure Orders Section 29 Bankruptcy Ordinance Nominee and Beneficial Ownership +4 more

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Parties

Chen Yung Ngai Kenneth

Applicant (trustee in Bankruptcy)

Chan Mei Mei

Applicant (trustee in Bankruptcy)

Chong Hing Bank Limited

1st Respondent (bank)

The Hongkong and Shanghai Banking Corporation Limited

2nd Respondent (bank)

China Merchants Bank Co., Ltd.

3rd Respondent (bank)

CMB Wing Lung Bank Limited

4th Respondent (bank)

Bank of China (Hong Kong) Limited

5th Respondent (bank)

Standard Chartered Bank (Hong Kong) Limited

6th Respondent (bank)

Procedural Posture

Bankruptcy Proceedings / Application for Production of Bank Documents Under Section 29 Bankruptcy Ordinance — Decision on Production and Notice

Legal Issues

  1. 1 Whether documents relating to specified bank accounts should be produced under section 29 BO
  2. 2 Whether the applicants have reasonable suspicion linking the accounts to the bankrupt and his dealings
  3. 3 Whether notice or joinder of account holders is required before a production order

Ratio Decidendi

The Trustees demonstrated reasonable grounds to suspect that the specified accounts related to the bankrupt or his nominees and that the account opening records and transaction documents were reasonably necessary for the Trustees' functions; accordingly production orders under s29 BO were appropriate in respect of certain accounts. However, as a general rule account holders should be given notice or be joined unless exceptional circumstances exist; absent such circumstances the court will require notice before making orders. Applying those principles, production orders were granted against Chong Hing Bank (APIDL account) and HSBC (accounts of Guan Qiao Ling and Zhao Jian Hong for...

Court Disposition

Production orders granted in part, refused in part, and other applications adjourned sine die with liberty to restore within 2 months to enable notice to account holders

Orders

  • Order for production by Chong Hing Bank Limited of APIDL account opening documents and full transaction records (account 258-1x-1xxx8x-4) from account opening to date of order; production to be within 14 days
  • Order for production by HSBC of all accounts held in the name of Guan Qiao Ling from opening date to present and all accounts held in the name of Zhao Jian Hong for period 1 January 2013 to 31 December 2014, including account opening documents, beneficial owner and authorised signatory records and transaction...