LAM CHOK LAI AND ANOTHER v. THE OFFICIAL RECEIVER AND TRUSTEE IN BANKRUPTCY OF LAM CHOK WAI, A BANKRUPT

LAM CHOK LAI AND ANOTHER v. THE OFFICIAL RECEIVER AND TRUSTEE IN BANKRUPTCY OF LAM CHOK WAI, A BANKRUPT

The plaintiffs discharged their burden by adducing up‑to‑date independent valuations and evidence of failed marketing; the court therefore exercised jurisdiction under the Partition Ordinance to vary directions to facilitate sale, refused an extended adjournment for the 2nd Defendant absent contemporaneous evidence, permitted sale pursuant to the Tang Offer subject to limited procedural conditions, and ordered costs against the 2nd Defendant.

Citation
[2021] HKCFI 260
Parties
1st Plaintiff: LAM CHOK LAI; 2nd Plaintiff: LAM CHOK LAI, The Executor of the Estate of LAM SHUM SHUN MUI, Deceased; 1st Defendant: The Official Receiver and Trustee in Bankruptcy of LAM CHOK WAI, a Bankrupt; 2nd Defendant: GENERAL FORTUNE INTERNATIONAL INC.
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
3 February 2021
Case Number
HCMP3042/2016
Procedural Posture
Application to Vary Order for Sale Under the Partition Ordinance / Decision on Summons in Chambers (reasons for Decision)
Outcome
Summons granted with directions to vary the sale arrangements under the 2018/2019 orders; sale to proceed subject to specified conditions, limited liberty for the 2nd Defendant to adduce expert evidence, and costs orders in favour of the plaintiffs and Official Receiver out of sale proceeds.
Legal Topics
Partition Ordinance, Order for Sale, Variation of Reserve Price, Valuation Evidence, Costs
Source Language
EN
Property Law Insolvency Civil Procedure Partition Ordinance Order for Sale Variation of Reserve Price Valuation Evidence Costs

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Parties

LAM CHOK LAI

1st Plaintiff

LAM CHOK LAI, The Executor of the Estate of LAM SHUM SHUN MUI, Deceased

2nd Plaintiff

The Official Receiver and Trustee in Bankruptcy of LAM CHOK WAI, a Bankrupt

1st Defendant

GENERAL FORTUNE INTERNATIONAL INC.

2nd Defendant

Procedural Posture

Application to Vary Order for Sale Under the Partition Ordinance / Decision on Summons in Chambers (reasons for Decision)

Legal Issues

  1. 1 Whether the court should vary the reserve price and give further directions to enable a sale under section 6 of the Partition Ordinance
  2. 2 Whether the 2nd Defendant should be allowed an adjournment to file expert valuation evidence
  3. 3 Whether the Tang Offer should be accepted and sale allowed to proceed subject to conditions

Ratio Decidendi

The plaintiffs discharged their burden by adducing up‑to‑date independent valuations and evidence of failed marketing; the court therefore exercised jurisdiction under the Partition Ordinance to vary directions to facilitate sale, refused an extended adjournment for the 2nd Defendant absent contemporaneous evidence, permitted sale pursuant to the Tang Offer subject to limited procedural conditions, and ordered costs against the 2nd Defendant.

Court Disposition

Summons granted with directions to vary the sale arrangements under the 2018/2019 orders; sale to proceed subject to specified conditions, limited liberty for the 2nd Defendant to adduce expert evidence, and costs orders in favour of the plaintiffs and Official Receiver out of sale proceeds.

Orders

  • Order varied in terms of the Summons with specified revisions
  • Time for completion of sale pursuant to the Tang Offer extended for one week