RE LO YIU CHUEN

RE LO YIU CHUEN

The Master found on the balance of probabilities that the Bankrupt's pre-bankruptcy conduct was unsatisfactory — notably the sale of his property three days after judgment, apparent use of proceeds to pay substantial gambling debts, and unusually generous tenancy terms benefiting related parties — and therefore exercised the discretion under section 30A(3) to suspend the automatic discharge for six months from 19 January 2014; costs were ordered nisi against the Bankrupt.

Citation
RE LO YIU CHUEN
Parties
Trustee: Joint and Several Trustees; Bankrupt: Lo Yiu Chuen; Petitioning Creditor: Petitioning Creditor
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
27 May 2014
Case Number
HCB14364/2009
Procedural Posture
Bankruptcy / Application to Suspend Automatic Discharge Under Section 30 a
Outcome
Automatic discharge suspended for 6 months from 19 January 2014; application for objection to discharge upheld on balance of probabilities; costs ordered nisi against the Bankrupt
Legal Topics
Section 30 a Objection to Discharge, Unsatisfactory Pre Bankruptcy Conduct, Suspension of Automatic Discharge, Avoidance/voidable Transactions, Costs
Source Language
EN
Bankruptcy Insolvency Commercial Law Property Law Section 30 a Objection to Discharge Unsatisfactory Pre Bankruptcy Conduct Suspension of Automatic Discharge Avoidance/voidable Transactions +1 more

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Parties

Joint and Several Trustees

Trustee

Lo Yiu Chuen

Bankrupt

Petitioning Creditor

Petitioning Creditor

Procedural Posture

Bankruptcy / Application to Suspend Automatic Discharge Under Section 30 a

Legal Issues

  1. 1 Whether the bankrupt's pre-bankruptcy conduct was unsatisfactory under section 30A(4)(d) of the Bankruptcy Ordinance
  2. 2 Whether the court should exercise its discretion under section 30A(3) to suspend the running of the relevant period for automatic discharge
  3. 3 Whether the sale of the property shortly after judgment and payment of proceeds to gambling debts constituted conduct to be condemned

Ratio Decidendi

The Master found on the balance of probabilities that the Bankrupt's pre-bankruptcy conduct was unsatisfactory — notably the sale of his property three days after judgment, apparent use of proceeds to pay substantial gambling debts, and unusually generous tenancy terms benefiting related parties — and therefore exercised the discretion under section 30A(3) to suspend the automatic discharge for six months from 19 January 2014; costs were ordered nisi against the Bankrupt.

Court Disposition

Automatic discharge suspended for 6 months from 19 January 2014; application for objection to discharge upheld on balance of probabilities; costs ordered nisi against the Bankrupt

Orders

  • Suspend automatic discharge under section 30A(3) for 6 months from 19 January 2014
  • Order nisi that the Bankrupt pay costs of this application to be taxed if not agreed with certificate of counsel, which shall become absolute unless varied within 14 days