RE TAM SIU LEUNG

RE TAM SIU LEUNG

The statutory demands sought net unsecured balances and, as a matter of law, third-party security does not render the petitioner a secured creditor under section 2 of the Bankruptcy Ordinance; therefore the Debtors had no valid defence and bankruptcy orders were properly made.

Citation
[2019] HKCFI 186
Parties
Petitioner: Zhongtai International Securities Limited; Debtor: Cheung Sung Kei Civic; Debtor: Tam Siu Leung; Debtor: Tam Shuk Yi Fanny
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
24 January 2019
Case Number
HCB6860/2017
Procedural Posture
Bankruptcy Petition / Hearing and Adjudication (debtors Adjudged Bankrupt)
Outcome
Bankruptcy orders granted; debtors adjudged bankrupt; costs awarded to petitioner.
Legal Topics
Statutory Demand, Definition of Secured Creditor, Third Party Security, Estoppel, Bankruptcy Rules
Source Language
EN
Bankruptcy Insolvency Security Interests Civil Procedure Statutory Demand Definition of Secured Creditor Third Party Security Estoppel +1 more

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Parties

Zhongtai International Securities Limited

Petitioner

Cheung Sung Kei Civic

Debtor

Tam Siu Leung

Debtor

Tam Shuk Yi Fanny

Debtor

Procedural Posture

Bankruptcy Petition / Hearing and Adjudication (debtors Adjudged Bankrupt)

Legal Issues

  1. 1 Whether statutory demands are for liquidated sums
  2. 2 Whether third-party security makes petitioner a 'secured creditor' under the Bankruptcy Ordinance
  3. 3 Whether estoppel or representations by petitioner defeat the statutory demands

Ratio Decidendi

The statutory demands sought net unsecured balances and, as a matter of law, third-party security does not render the petitioner a secured creditor under section 2 of the Bankruptcy Ordinance; therefore the Debtors had no valid defence and bankruptcy orders were properly made.

Court Disposition

Bankruptcy orders granted; debtors adjudged bankrupt; costs awarded to petitioner.

Orders

  • Bankruptcy orders made against Cheung Sung Kei Civic (HCB 7403/2017), Tam Siu Leung (HCB 6860/2017) and Tam Shuk Yi Fanny (HCB 7402/2017)
  • Costs awarded to the petitioner