RE CHUNG CHEUK MAN

RE CHUNG CHEUK MAN

Mantell J. accepted jurisdiction to set aside the original Receiving Order because the debtors' solicitor was prevented from attending, then, after hearing the petition de novo and applying established principles on burden of proof and judicial discretion (including regard to the Official Receiver's view and public...

Source-derived case information.

Citation
RE CHUNG CHEUK MAN
Parties
Creditor: Wayfoong Credit Limited; Debtor: Chung Cheuk Man; Chung Cheuk Wi trading as Lee Kee Motors Co.; Official Receiver: Official Receiver (J.P. Hugo)
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
15 July 1985
Case Number
HCB232/1985
Procedural Posture
Bankruptcy / Hearing on Creditor's Petition; Original Receiving Order Set Aside and Petition Heard De Novo
Outcome
Original Receiving Order dated 10 June 1985 set aside; fresh Receiving Order made on 15 July 1985 after hearing de novo
Legal Topics
Receiving Order, Burden of Proof, 15% Rule, Annulment, Judicial Discretion, Public Interest
Source Language
en
Bankruptcy Insolvency Civil Procedure Receiving Order Burden of Proof 15% Rule Annulment Judicial Discretion +1 more

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Parties

Wayfoong Credit Limited

Creditor

Chung Cheuk Man; Chung Cheuk Wi trading as Lee Kee Motors Co.

Debtor

Official Receiver (J.P. Hugo)

Official Receiver

Procedural Posture

Bankruptcy / Hearing on Creditor's Petition; Original Receiving Order Set Aside and Petition Heard De Novo

Legal Issues

  1. 1 Whether the Court may set aside a Receiving Order made in the absence of the debtors' solicitor
  2. 2 Who bears the burden of proof as to whether assets will produce a 15% dividend (the "15% rule")
  3. 3 Whether the Court should exercise its discretion to make a Receiving Order despite evidence that assets may be insufficient to pay a 15% dividend

Ratio Decidendi

Mantell J. accepted jurisdiction to set aside the original Receiving Order because the debtors' solicitor was prevented from attending, then, after hearing the petition de novo and applying established principles on burden of proof and judicial discretion (including regard to the Official Receiver's view and public interest), exercised his discretion to make a fresh Receiving Order despite admissions of heavy indebtedness and potential insufficiency of assets to pay a 15% dividend.

Court Disposition

Original Receiving Order dated 10 June 1985 set aside; fresh Receiving Order made on 15 July 1985 after hearing de novo

Orders

  • Set aside the Receiving Order made on 10 June 1985
  • Made a fresh Receiving Order on 15 July 1985