RE CHUI TAK KEUNG DUNCAN

RE CHUI TAK KEUNG DUNCAN

The court applied the Peruvian Guano relevance test and ordered limited disclosure: specific redacted portions of CTKD-6 (calculation of distribution of the $180m dividend between parents), CTKD-11 (income statement line for 'interim dividend paid' for 2013 and 2014), CTKD-19 (second paragraph of the covering email re: wife's loans), and CTKD-24 (second paragraph of covering email re: in-laws' claims) must be produced; broader discovery was refused; where unredacted documents were not in the respondent's possession (redactions by family members/third parties) no production order was made; costs ordered nisi that respondent pay 40% of costs of the Discovery Summons.

Citation
[2022] HKCFI 1024
Parties
Creditor / Applicant: Zhongcai Finance Limited; Debtor / Respondent: Chui Tak Keung Duncan
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
8 April 2022
Case Number
HCBI2/2021
Procedural Posture
Bankruptcy (individual Voluntary Arrangement Under Bankruptcy Ordinance) / Discovery Summons Hearing in Support of S.20 J Revocation Application (interim Order/iva Context)
Outcome
Discovery summons partly granted; specified redactions ordered produced; limited costs order against respondent
Legal Topics
Individual Voluntary Arrangement, Discovery and Production, Revocation/suspension of IVA Approval (s.20 J), Verification of Proofs of Debt, Costs
Source Language
EN
Bankruptcy Insolvency Civil Procedure Evidence and Discovery Individual Voluntary Arrangement Discovery and Production Revocation/suspension of IVA Approval (s.20 J) Verification of Proofs of Debt +1 more

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Parties

Zhongcai Finance Limited

Creditor / Applicant

Chui Tak Keung Duncan

Debtor / Respondent

Procedural Posture

Bankruptcy (individual Voluntary Arrangement Under Bankruptcy Ordinance) / Discovery Summons Hearing in Support of S.20 J Revocation Application (interim Order/iva Context)

Legal Issues

  1. 1 Whether redacted parts of exhibited documents are relevant and should be produced under the Peruvian Guano relevance test
  2. 2 Whether the debtor's statutory duty of candour for an IVA expands the scope of discovery beyond ordinary discovery principles
  3. 3 Whether redactions made by third parties or the Nominees are within the respondent's possession, custody or power for production purposes

Ratio Decidendi

The court applied the Peruvian Guano relevance test and ordered limited disclosure: specific redacted portions of CTKD-6 (calculation of distribution of the $180m dividend between parents), CTKD-11 (income statement line for 'interim dividend paid' for 2013 and 2014), CTKD-19 (second paragraph of the covering email re: wife's loans), and CTKD-24 (second paragraph of covering email re: in-laws' claims) must be produced; broader discovery was refused; where unredacted documents were not in the respondent's possession (redactions by family members/third parties) no production order was made; costs ordered nisi that respondent pay 40% of costs of the Discovery Summons.

Court Disposition

Discovery summons partly granted; specified redactions ordered produced; limited costs order against respondent

Orders

  • Produce that part of CTKD-6 setting out calculations of how the dividend from Coqueen was distributed between father and mother
  • Produce in CTKD-11 the line relating to 'interim dividend paid' for 2013 and 2014 in Coqueen's income statement for the year ending 31 March 2014