Re Cheng Ka Lun Grand

Re Cheng Ka Lun Grand

The court was not satisfied that refusal of the debtor's offer was unreasonable: the payment proposed (US$1,000,000 — ~58% of the judgment) to be paid over more than two years exposed the creditor to risk and a reasonable creditor could properly refuse; accordingly a bankruptcy order was made against the debtor with costs to the petitioner.

Citation
Re Cheng Ka Lun Grand
Parties
Creditor: Waygood Investment Ltd; Debtor: Cheng Ka Lun Grand; Official Receiver: Official Receiver
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
23 December 2002
Case Number
HCB17553/2002
Procedural Posture
Bankruptcy / Bankruptcy Petition Hearing — Judgment Made
Outcome
Bankruptcy order made against the debtor with costs to the petitioner.
Legal Topics
Statutory Demand, Section 6 D(3) Bankruptcy Ordinance, Settlement Offers and Refusal, Reasonable Creditor Test
Source Language
EN
Bankruptcy Insolvency Civil Procedure Enforcement of Judgment Statutory Demand Section 6 D(3) Bankruptcy Ordinance Settlement Offers and Refusal Reasonable Creditor Test

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Parties

Waygood Investment Ltd

Creditor

Cheng Ka Lun Grand

Debtor

Official Receiver

Official Receiver

Procedural Posture

Bankruptcy / Bankruptcy Petition Hearing — Judgment Made

Legal Issues

  1. 1 Whether the debtor's settlement offer was unreasonably refused within section 6D(3) of the Bankruptcy Ordinance
  2. 2 Whether the petition should be dismissed because no reasonable hypothetical creditor would have refused the offer
  3. 3 Whether the terms (58% of judgment paid over >2 years) rendered the offer unacceptable

Ratio Decidendi

The court was not satisfied that refusal of the debtor's offer was unreasonable: the payment proposed (US$1,000,000 — ~58% of the judgment) to be paid over more than two years exposed the creditor to risk and a reasonable creditor could properly refuse; accordingly a bankruptcy order was made against the debtor with costs to the petitioner.

Court Disposition

Bankruptcy order made against the debtor with costs to the petitioner.

Orders

  • Bankruptcy order made against Cheng Ka Lun Grand
  • Costs awarded to Waygood Investment Ltd