RE TSUI SHING CHUEN

RE TSUI SHING CHUEN

The court held that scale fees were largely chargeable as computed under the Bankruptcy Fees Rules but the ad valorem fee must be calculated only on assets of the bankrupt and therefore should exclude the HK$1.4m provided by the debtor's wife; having considered hardship, the disparity between scale fees and actual time costs, and the straightforward nature of the Official Receiver's work, the court exercised its discretion under s114(2) to remit HK$520,000 of the Official Receiver's fees, leaving HK$204,915 payable to the Official Receiver; costs were ordered against the debtor.

Citation
RE TSUI SHING CHUEN
Parties
Respondent / Applicant for Remission: Tsui Shing Chuen; Trustee in Bankruptcy / Respondent: Official Receiver; Petitioner / Creditor: Bank of China
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
25 September 2012
Case Number
HCB1349/2010
Procedural Posture
Bankruptcy (annulment and Remission Application) / Adjourned Hearing for Remission of Official Receiver's Fees Following Annulment (decision 25 September 2012)
Outcome
Application for remission granted in part
Legal Topics
Remission of Fees Under Section 114(2), Bankruptcy Annulment (s33), Bankruptcy Fees Rules (scale Fees Vs Time Costs), Ad Valorem and Dividend Fees, Official Receiver Accounting
Source Language
EN
Bankruptcy Insolvency Civil Procedure Administrative Law (remuneration of Public Officer) Remission of Fees Under Section 114(2) Bankruptcy Annulment (s33) Bankruptcy Fees Rules (scale Fees Vs Time Costs) Ad Valorem and Dividend Fees +1 more

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Parties

Tsui Shing Chuen

Respondent / Applicant for Remission

Official Receiver

Trustee in Bankruptcy / Respondent

Bank of China

Petitioner / Creditor

Procedural Posture

Bankruptcy (annulment and Remission Application) / Adjourned Hearing for Remission of Official Receiver's Fees Following Annulment (decision 25 September 2012)

Legal Issues

  1. 1 Whether scale fees under the Bankruptcy Fees Rules were correctly calculated
  2. 2 Whether the HK$1.4m provided by third party (debtor's wife) should be included in ad valorem fee calculations
  3. 3 Whether the court should remit Official Receiver's scale fees under s114(2) to reflect time costs given debtor hardship

Ratio Decidendi

The court held that scale fees were largely chargeable as computed under the Bankruptcy Fees Rules but the ad valorem fee must be calculated only on assets of the bankrupt and therefore should exclude the HK$1.4m provided by the debtor's wife; having considered hardship, the disparity between scale fees and actual time costs, and the straightforward nature of the Official Receiver's work, the court exercised its discretion under s114(2) to remit HK$520,000 of the Official Receiver's fees, leaving HK$204,915 payable to the Official Receiver; costs were ordered against the debtor.

Court Disposition

Application for remission granted in part

Orders

  • Remission of Official Receiver's fees in the sum of HK$520,000 ordered under section 114(2) of the Bankruptcy Ordinance
  • Official Receiver to retain HK$204,915 in respect of fees for this bankruptcy