RE LEUNG HOI

RE LEUNG HOI

The correct test for setting aside a statutory demand is whether the debtor has suffered prejudice from the defect; here no prejudice was caused by omission and, on the merits, the applicant failed to establish a bona fide dispute on substantial grounds, therefore the application to set aside the statutory demand was dismissed.

Citation
RE LEUNG HOI
Parties
Applicant (debtor): Leung Hoi; Respondent (creditor): G.I.T.I.C. (Hong Kong)
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
18 November 1999
Case Number
HCSD20/1999
Procedural Posture
Application to Set Aside Statutory Demand Under the Bankruptcy Ordinance (cap.6) / Decision on Application in Chambers (hearing and Judgment)
Outcome
Application to set aside the statutory demand dismissed
Legal Topics
Statutory Demand, Setting Aside, Prejudice Test, Bona Fide Dispute
Source Language
EN
Bankruptcy Civil Procedure Contract Statutory Demand Setting Aside Prejudice Test Bona Fide Dispute

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Parties

Leung Hoi

Applicant (debtor)

G.I.T.I.C. (Hong Kong)

Respondent (creditor)

Procedural Posture

Application to Set Aside Statutory Demand Under the Bankruptcy Ordinance (cap.6) / Decision on Application in Chambers (hearing and Judgment)

Legal Issues

  1. 1 Whether omission of words from Form 163 required setting aside the statutory demand
  2. 2 Whether the debtor suffered prejudice from the defective form
  3. 3 Whether the debtor established a bona fide dispute on substantial grounds

Ratio Decidendi

The correct test for setting aside a statutory demand is whether the debtor has suffered prejudice from the defect; here no prejudice was caused by omission and, on the merits, the applicant failed to establish a bona fide dispute on substantial grounds, therefore the application to set aside the statutory demand was dismissed.

Court Disposition

Application to set aside the statutory demand dismissed

Orders

  • Leave to apply to set aside granted out of time
  • Application to set aside statutory demand dismissed