RE LEE WING

RE LEE WING

A self-petition presented without a genuine intention to seek a bankruptcy order and used to suspend repayment obligations or to negotiate with creditors constitutes an abuse of process; such petitions will be dismissed (including for want of prosecution where hearings are not attended) and Official Receiver costs are to be met from the deposit.

Citation
[2021] HKCFI 3732
Parties
Debtor: SO TSZ MAN (蘇芷蔓); Debtor: LEE WING (李穎); Debtor: TAM WAI YIU (譚偉耀); Debtor: QIU WENJUN (邱文俊); Official Receiver: Official Receiver
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
10 December 2021
Case Number
HCB7299/2020
Procedural Posture
Bankruptcy Proceedings / Judgment (reasons for Judgment)
Outcome
Each debtors' self-petition dismissed as an abuse of process
Legal Topics
Self Petition, Abuse of Process, Adjournment, Costs, Moratorium
Source Language
EN
Bankruptcy Insolvency Civil Procedure Self Petition Abuse of Process Adjournment Costs Moratorium

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Parties

SO TSZ MAN (蘇芷蔓)

Debtor

LEE WING (李穎)

Debtor

TAM WAI YIU (譚偉耀)

Debtor

QIU WENJUN (邱文俊)

Debtor

Official Receiver

Official Receiver

Procedural Posture

Bankruptcy Proceedings / Judgment (reasons for Judgment)

Legal Issues

  1. 1 Whether a debtor may use a self-petition to obtain a moratorium from creditors or as a bargaining tool
  2. 2 Whether presenting a self-petition while not intending to seek a bankruptcy order amounts to abuse of process
  3. 3 Whether failure to attend hearings or repeated adjournments to negotiate with creditors justifies dismissal for want of prosecution or abuse

Ratio Decidendi

A self-petition presented without a genuine intention to seek a bankruptcy order and used to suspend repayment obligations or to negotiate with creditors constitutes an abuse of process; such petitions will be dismissed (including for want of prosecution where hearings are not attended) and Official Receiver costs are to be met from the deposit.

Court Disposition

Each debtors' self-petition dismissed as an abuse of process

Orders

  • Each petition dismissed.
  • Official Receiver's costs of HKD 5,300 to be deducted from the deposit paid by each debtor.