RE ALLAN YAP

RE ALLAN YAP

The debtor failed to establish a bona fide dispute on substantial grounds with sufficiently precise and believable evidence; the guarantees contain express terms declaring them legal, valid and binding and the warning notices and surrounding objective circumstances contradict the debtor's claim of lack of intention or inducement; there was no credible evidence of the alleged representation by Huarong representatives; accordingly the petitions succeed and a bankruptcy order is made.

Citation
[2020] HKCFI 1946
Parties
Debtor: Allan Yap; Petitioner: Bloom Right Limited; Petitioner: Plenty Choice Investments Limited; Petitioner: Unique Rosy Limited; Supporting Creditor: CW Financing Limited; Supporting Creditor: Citizens Money Lending Corporation Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
7 August 2020
Case Number
HCB7289/2019
Procedural Posture
Bankruptcy Proceedings (petition) / Judgment — Bankruptcy Order Made
Outcome
Bankruptcy order made against Allan Yap
Legal Topics
Statutory Demand, Guarantee, Bona Fide Dispute on Substantial Grounds, Intention to Create Legal Relations, Unconscionability, Setting Aside Judgments, Summary Assessment of Costs
Source Language
EN
Bankruptcy Insolvency Contract Law Misrepresentation Costs Statutory Demand Guarantee Bona Fide Dispute on Substantial Grounds +4 more

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Parties

Allan Yap

Debtor

Bloom Right Limited

Petitioner

Plenty Choice Investments Limited

Petitioner

Unique Rosy Limited

Petitioner

CW Financing Limited

Supporting Creditor

Citizens Money Lending Corporation Limited

Supporting Creditor

Procedural Posture

Bankruptcy Proceedings (petition) / Judgment — Bankruptcy Order Made

Legal Issues

  1. 1 Whether the debtor has a bona fide dispute on substantial grounds to oppose the bankruptcy petitions
  2. 2 Whether the guarantees signed by the debtor were unenforceable for lack of intention to create legal relations
  3. 3 Whether the guarantees are voidable for misrepresentation or unconscionability

Ratio Decidendi

The debtor failed to establish a bona fide dispute on substantial grounds with sufficiently precise and believable evidence; the guarantees contain express terms declaring them legal, valid and binding and the warning notices and surrounding objective circumstances contradict the debtor's claim of lack of intention or inducement; there was no credible evidence of the alleged representation by Huarong representatives; accordingly the petitions succeed and a bankruptcy order is made.

Court Disposition

Bankruptcy order made against Allan Yap

Orders

  • Bankruptcy order made against Allan Yap
  • Costs of the Petitioners are summarily assessed at $16,497 for each petition