RE HANG SENG BANK LTD

RE HANG SENG BANK LTD

Where a petitioning creditor establishes a debt and has reason to suppose the debtor may possess assets but cannot investigate because the debtor is uncontactable, the court should take a tentative view and, absent definite evidence that assets are insufficient to yield a 15% dividend and absent opposition from the Official Receiver, grant a Receiving Order under s.9(3).

Citation
RE HANG SENG BANK LTD
Parties
Petitioning Creditor: Hang Seng Bank Limited; Debtor: Ho Sum; Interested Party: Official Receiver
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
29 April 1983
Case Number
HCB143/1982
Procedural Posture
Bankruptcy Petition for Receiving Order / Hearing and Decision on Petition (ex Parte/default Basis)
Outcome
Receiving Order made against debtor Ho Sum
Legal Topics
Receiving Order, 15 Per Cent Rule (s.9(3)), Burden of Proof, Official Receiver Powers, Discretion to Dismiss Petition
Source Language
EN
Bankruptcy Insolvency Civil Procedure Receiving Order 15 Per Cent Rule (s.9(3)) Burden of Proof Official Receiver Powers Discretion to Dismiss Petition

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Parties

Hang Seng Bank Limited

Petitioning Creditor

Ho Sum

Debtor

Official Receiver

Interested Party

Procedural Posture

Bankruptcy Petition for Receiving Order / Hearing and Decision on Petition (ex Parte/default Basis)

Legal Issues

  1. 1 Whether a Receiving Order should be made under section 9(3) of the Bankruptcy Ordinance given the 15% rule
  2. 2 Where the burden of proof lies when the court assesses likely assets available for distribution
  3. 3 Weight to be given to the Official Receiver's position and to a debtor's non‑appearance or unsupported assertions of no assets

Ratio Decidendi

Where a petitioning creditor establishes a debt and has reason to suppose the debtor may possess assets but cannot investigate because the debtor is uncontactable, the court should take a tentative view and, absent definite evidence that assets are insufficient to yield a 15% dividend and absent opposition from the Official Receiver, grant a Receiving Order under s.9(3).

Court Disposition

Receiving Order made against debtor Ho Sum

Orders

  • Receiving Order made against Ho Sum
  • Petitioners' costs to be taxed and paid out of the estate