RE LEE NIM WAI

RE LEE NIM WAI

The court refused leave to file opposition out of time and refused to adjourn the petitions because the debtor failed to show good reason to extend time or to produce a valid, concrete and timely prospect of payment; the alleged US$750,000 was a future contingency not cash or a readily realisable asset in the debtor's hands and the SPA did not entitle the debtor to the claimed sums; therefore petitioners were entitled to an immediate bankruptcy order and Mitsubishi's costs should be treated as an expense of the bankruptcy.

Citation
[2024] HKCFI 1843
Parties
Debtor: LEE NIM WAI; Judgment Creditor / Petitioner in HCB 5893/2023: ORIX ASIA LIMITED; Creditor / Petitioner in HCB 2582/2024: MITSUBISHI HC CAPITAL (HONG KONG) LIMITED; Official Receiver: OFFICIAL RECEIVER
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
12 July 2024
Case Number
HCB5893/2023
Procedural Posture
Bankruptcy Proceedings / Bankruptcy Order Made (reasons for Judgment)
Outcome
Bankruptcy order made against Lee Nim Wai in HCB 5893/2023; applications to file notices out of time refused; petitions not adjourned; costs allocated as ordered
Legal Topics
Statutory Demand, Bankruptcy Order, Inability to Pay, Adjournment on Prospect of Payment, Costs in Bankruptcy
Source Language
EN
Bankruptcy Civil Procedure Debt Recovery Statutory Demand Bankruptcy Order Inability to Pay Adjournment on Prospect of Payment Costs in Bankruptcy

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Parties

LEE NIM WAI

Debtor

ORIX ASIA LIMITED

Judgment Creditor / Petitioner in HCB 5893/2023

MITSUBISHI HC CAPITAL (HONG KONG) LIMITED

Creditor / Petitioner in HCB 2582/2024

OFFICIAL RECEIVER

Official Receiver

Procedural Posture

Bankruptcy Proceedings / Bankruptcy Order Made (reasons for Judgment)

Legal Issues

  1. 1 Whether the debtor is deemed unable to pay by failure to comply with statutory demands under s.6A(1)(a) BO
  2. 2 Whether leave should be granted to file notice of intention to oppose out of time under rule 68
  3. 3 Whether there is a reasonable prospect of payment such that petitions should be adjourned under s.9(3) BO

Ratio Decidendi

The court refused leave to file opposition out of time and refused to adjourn the petitions because the debtor failed to show good reason to extend time or to produce a valid, concrete and timely prospect of payment; the alleged US$750,000 was a future contingency not cash or a readily realisable asset in the debtor's hands and the SPA did not entitle the debtor to the claimed sums; therefore petitioners were entitled to an immediate bankruptcy order and Mitsubishi's costs should be treated as an expense of the bankruptcy.

Court Disposition

Bankruptcy order made against Lee Nim Wai in HCB 5893/2023; applications to file notices out of time refused; petitions not adjourned; costs allocated as ordered

Orders

  • Bankruptcy order made against Lee Nim Wai in HCB 5893/2023
  • Leave to file notices of intention to oppose out of time refused