STANDARD CHARTERED BANK HONG KONG TRUSTEE LTD v. AU-YANG LAM LAI MING AND OTHERS

STANDARD CHARTERED BANK HONG KONG TRUSTEE LTD v. AU-YANG LAM LAI MING AND OTHERS

Because no dividend in the bankrupt estate of Sabrina had been ascertained or declared and the percentage dividend could not be readily determined, the administrator was not permitted to retain the first interim distribution or the accrued interest; absent an ascertainable dividend the personal representative must...

Source-derived case information.

Citation
STANDARD CHARTERED BANK HONG KONG TRUSTEE LTD v. AU-YANG LAM LAI MING AND OTHERS
Parties
Plaintiff/administrator of the Estate of Lau Sui Ling: Standard Chartered Bank Hong Kong Trustee Limited; 1st Defendant / Trustee in Bankruptcy: The Official Receiver (trustee of the property of Sabrina Au-Yang Lam Lai Ming); 2nd Defendant / Beneficiary: Alison Lam Lai Bing; 3rd Defendant / Beneficiary: Victoria Lam Sze Wing; 4th Defendant / Beneficiary (minor): Patricia Lam Sze Wan (a minor); 5th Defendant / Beneficiary (minor): Paul Lam Sze Chung, JR. (a minor); 6th Defendant / Beneficiary: Stephen Lam Sou Wing; 7th Defendant / Beneficiary: Rogerio Lam Sou Fung; 8th Defendant / Beneficiary: Samuel Lam Sou Tong; 9th Defendant / Beneficiary: Lam Shau Wai
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
26 April 1988
Case Number
HCMP779/1987
Procedural Posture
High Court — Miscellaneous Proceedings (probate/bankruptcy Dispute) / Interlocutory Ruling
Outcome
Court answered question (c) in the negative: Administrator shall not continue to withhold the first interim distribution or accrued interest; payment must be made to the Official Receiver as trustee in bankruptcy.
Legal Topics
Right of Retention (retainer), Proof in Bankruptcy, Legacy Entitlement and Dividends, Set Off and Mutual Dealings
Source Language
en
Trusts and Probate Bankruptcy Equity Civil Procedure Right of Retention (retainer) Proof in Bankruptcy Legacy Entitlement and Dividends Set Off and Mutual Dealings

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Parties

Standard Chartered Bank Hong Kong Trustee Limited

Plaintiff/administrator of the Estate of Lau Sui Ling

The Official Receiver (trustee of the property of Sabrina Au-Yang Lam Lai Ming)

1st Defendant / Trustee in Bankruptcy

Alison Lam Lai Bing

2nd Defendant / Beneficiary

Victoria Lam Sze Wing

3rd Defendant / Beneficiary

Patricia Lam Sze Wan (a minor)

4th Defendant / Beneficiary (minor)

Paul Lam Sze Chung, JR. (a minor)

5th Defendant / Beneficiary (minor)

Stephen Lam Sou Wing

6th Defendant / Beneficiary

Rogerio Lam Sou Fung

7th Defendant / Beneficiary

Samuel Lam Sou Tong

8th Defendant / Beneficiary

Lam Shau Wai

9th Defendant / Beneficiary

Procedural Posture

High Court — Miscellaneous Proceedings (probate/bankruptcy Dispute) / Interlocutory Ruling

Legal Issues

  1. 1 Whether the Administrator may withhold the first interim distribution from the Official Receiver as trustee in bankruptcy of a beneficiary (Sabrina)
  2. 2 Whether the personal representative must prove the debt in the bankrupt beneficiary's bankruptcy and rank pari passu with other creditors
  3. 3 Whether accrued interest on the withheld sum should be paid to the Official Receiver

Ratio Decidendi

Because no dividend in the bankrupt estate of Sabrina had been ascertained or declared and the percentage dividend could not be readily determined, the administrator was not permitted to retain the first interim distribution or the accrued interest; absent an ascertainable dividend the personal representative must not withhold the sum and must pay it to the Official Receiver.

Court Disposition

Court answered question (c) in the negative: Administrator shall not continue to withhold the first interim distribution or accrued interest; payment must be made to the Official Receiver as trustee in bankruptcy.

Orders

  • Administrator/Plaintiff shall pay the first interim distribution to the Official Receiver as trustee in bankruptcy of Sabrina Au-Yang Lam Lai Ming
  • Administrator/Plaintiff shall pay all accrued interest on the sum previously withheld to the Official Receiver