RE WONG LEE THOMAS

RE WONG LEE THOMAS

Partition was impractical; trustees have a duty to realise the bankrupt's vested 50% interest for creditors; the occupier failed to establish that sale would cause exceptional hardship outweighing creditors' interests; accordingly declare tenancy in common and order sale unless occupier purchases trustees' 50% within 4 months at the specified price.

Citation
[2021] HKCFI 1317
Parties
Applicant/trustee: Joint and Several Trustees of the property of Wong Lee Thomas; Bankrupt/respondent: Wong Lee Thomas; Co Owner/respondent: Tse Ngan Choi (謝銀彩)
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
10 May 2021
Case Number
HCB2692/2006
Procedural Posture
Bankruptcy Proceedings; Application for Sale Under Partition Ordinance S6 / Chambers Hearing on Trustees' Summons; Reasons for Decision
Outcome
Declaration that the Trustees and Tse hold the Property as tenants in common in equal shares; order for sale of the Property unless Tse purchases the Trustees' 50% interest within 4 months.
Legal Topics
Order for Sale Under Partition Ordinance S6, Tenancy in Common and Severance of Joint Tenancy, Trustees' Duty to Realise Assets, Creditor Priority Vs Occupier Hardship
Source Language
EN
Bankruptcy Property Law Equity Civil Procedure Order for Sale Under Partition Ordinance S6 Tenancy in Common and Severance of Joint Tenancy Trustees' Duty to Realise Assets Creditor Priority Vs Occupier Hardship

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Parties

Joint and Several Trustees of the property of Wong Lee Thomas

Applicant/trustee

Wong Lee Thomas

Bankrupt/respondent

Tse Ngan Choi (謝銀彩)

Co Owner/respondent

Procedural Posture

Bankruptcy Proceedings; Application for Sale Under Partition Ordinance S6 / Chambers Hearing on Trustees' Summons; Reasons for Decision

Legal Issues

  1. 1 Whether the court should order sale of the property under s6 Partition Ordinance
  2. 2 Whether to allow the occupying co-owner an opportunity to purchase the trustees' 50% interest and on what terms
  3. 3 Whether an order for sale would cause undue hardship to the occupier that outweighs creditors' interests

Ratio Decidendi

Partition was impractical; trustees have a duty to realise the bankrupt's vested 50% interest for creditors; the occupier failed to establish that sale would cause exceptional hardship outweighing creditors' interests; accordingly declare tenancy in common and order sale unless occupier purchases trustees' 50% within 4 months at the specified price.

Court Disposition

Declaration that the Trustees and Tse hold the Property as tenants in common in equal shares; order for sale of the Property unless Tse purchases the Trustees' 50% interest within 4 months.

Orders

  • Property to be sold with vacant possession by Trustees in such manner as they see fit provided selling price is not less than HK$2,100,000 (if premium unpaid) or HK$3,950,000 (if Trustees pay premium)
  • Conduct of the sale to be given to Trustees' solicitors Messrs Gallant