IP PUI LAM ARTHUR AND ANOTHER v. ALAN CHUNG WAH TANG AND OTHERS

IP PUI LAM ARTHUR AND ANOTHER v. ALAN CHUNG WAH TANG AND OTHERS

The court held that the documents specified in the R1 and R2 schedules are reasonably required under section 29 to enable the Trustees to perform their statutory functions, that Tang and Wong either had possession or a presently enforceable power as partners to obtain the documents, and that enforcement and a fresh...

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Citation
IP PUI LAM ARTHUR AND ANOTHER v. ALAN CHUNG WAH TANG AND OTHERS
Parties
Bankrupt: Ho Yuk Wah David; Joint and Several Trustee in Bankruptcy (applicant): Ip Pui Lam Arthur; Joint and Several Trustee in Bankruptcy (applicant): Ip Pui Sum; Joint and Several Liquidator of CWT Textile Supplies Company Limited; Minority Partner of JBPB (1st Respondent): Alan Chung Wah Tang; Joint and Several Liquidator of CWT Textile Supplies Company Limited; Minority Partner of JBPB (1st Respondent): Alison Wong Lee Fung Ying; Accounting Firm; 2nd Respondent (majority Partners Represented): JBPB & Co (formerly known as Grant Thornton)
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
18 March 2015
Case Number
HCB3819/2011
Procedural Posture
Bankruptcy Proceedings / Chambers Hearing and Decision on Summons for Enforcement of Discovery Order and for a Fresh Discovery Order (application Dated 7 February 2014; Decision 18 March 2015)
Outcome
Summons granted: enforcement of the R1 order and fresh discovery order against Tang and Wong; penal notice endorsed; 21 days to comply; costs awarded on an indemnity basis against Tang and Wong personally; costs of majority partners to be paid from bankrupt's estate; order nisi on personal costs with 14 days to object.
Legal Topics
Discovery Under Section 29 Bankruptcy Ordinance, Enforcement of Court Orders (order 45 R6), Powers of Trustees and Liquidators, Control and Production of Documents, Penal Notice, Costs (indemnity)
Source Language
en
Bankruptcy Insolvency Company Law Civil Procedure Partnership Law Discovery Under Section 29 Bankruptcy Ordinance Enforcement of Court Orders (order 45 R6) Powers of Trustees and Liquidators +3 more

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Parties

Ho Yuk Wah David

Bankrupt

Ip Pui Lam Arthur

Joint and Several Trustee in Bankruptcy (applicant)

Ip Pui Sum

Joint and Several Trustee in Bankruptcy (applicant)

Alan Chung Wah Tang

Joint and Several Liquidator of CWT Textile Supplies Company Limited; Minority Partner of JBPB (1st Respondent)

Alison Wong Lee Fung Ying

Joint and Several Liquidator of CWT Textile Supplies Company Limited; Minority Partner of JBPB (1st Respondent)

JBPB & Co (formerly known as Grant Thornton)

Accounting Firm; 2nd Respondent (majority Partners Represented)

Procedural Posture

Bankruptcy Proceedings / Chambers Hearing and Decision on Summons for Enforcement of Discovery Order and for a Fresh Discovery Order (application Dated 7 February 2014; Decision 18 March 2015)

Legal Issues

  1. 1 Scope of discovery under section 29 of the Bankruptcy Ordinance
  2. 2 Standard to obtain documents: 'reasonably required' vs Order 24 relevance test
  3. 3 Whether the 1st Respondents are able to provide the documents or have power to obtain them

Ratio Decidendi

The court held that the documents specified in the R1 and R2 schedules are reasonably required under section 29 to enable the Trustees to perform their statutory functions, that Tang and Wong either had possession or a presently enforceable power as partners to obtain the documents, and that enforcement and a fresh discovery order should be made with a penal notice; Tang and Wong were ordered to comply within 21 days and to pay Trustees' costs personally on an indemnity basis, with majority partners' costs to be paid from the bankrupt's estate.

Court Disposition

Summons granted: enforcement of the R1 order and fresh discovery order against Tang and Wong; penal notice endorsed; 21 days to comply; costs awarded on an indemnity basis against Tang and Wong personally; costs of majority partners to be paid from bankrupt's estate; order nisi on personal costs with 14 days to object.

Orders

  • Enforcement order pursuant to Order 45 r6(1): Tang and Wong to comply with paragraphs 1 and 2 of the R1 order (production of specified supporting documents or affirmations) within 21 days
  • Fresh discovery order pursuant to section 29 Bankruptcy Ordinance: Tang and Wong, as partners of JBPB, to produce documents specified in the R2 schedule or file affirmations within 21 days