RE LEUNG KA CHUN

RE LEUNG KA CHUN

Because the Debtor failed to comply with the statutory demand he was deemed unable to pay under s.6A(1)(a); the Debtor bore the burden to show a bona fide dispute on substantial grounds and produced only bare assertions and no contemporaneous evidence to rebut the signed guarantee; the execution page identified him as guarantor and no vitiating facts were proved, therefore the Debtor did not discharge the evidential burden and the petition succeeded resulting in a bankruptcy order.

Citation
[2024] HKCFI 3042
Parties
Petitioner / Creditor: 成都圆中侨信商贸有限公司; Debtor: Leung Ka Chun; Official Receiver: Official Receiver's Office
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
28 October 2024
Case Number
HCB2617/2024
Procedural Posture
Bankruptcy Proceedings / Judgment (reasons for Judgment)
Outcome
Bankruptcy order made against the Debtor
Legal Topics
Statutory Demand, Bona Fide Dispute on Substantial Grounds, Service of Documents, Security for Costs, Costs
Source Language
EN
Bankruptcy Contract Civil Procedure Security/guarantee Statutory Demand Bona Fide Dispute on Substantial Grounds Service of Documents Security for Costs +1 more

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Parties

成都圆中侨信商贸有限公司

Petitioner / Creditor

Leung Ka Chun

Debtor

Official Receiver's Office

Official Receiver

Procedural Posture

Bankruptcy Proceedings / Judgment (reasons for Judgment)

Legal Issues

  1. 1 Whether the debtor is deemed unable to pay debts by virtue of failure to comply with a statutory demand under s.6A(1)(a)
  2. 2 Whether the debtor has demonstrated a bona fide dispute on substantial grounds in respect of the debt arising under a guarantee
  3. 3 Whether the debtor can disown a document he signed on the basis of alleged misrepresentations or lack of consent

Ratio Decidendi

Because the Debtor failed to comply with the statutory demand he was deemed unable to pay under s.6A(1)(a); the Debtor bore the burden to show a bona fide dispute on substantial grounds and produced only bare assertions and no contemporaneous evidence to rebut the signed guarantee; the execution page identified him as guarantor and no vitiating facts were proved, therefore the Debtor did not discharge the evidential burden and the petition succeeded resulting in a bankruptcy order.

Court Disposition

Bankruptcy order made against the Debtor

Orders

  • Made a usual bankruptcy order against Leung Ka Chun (the Debtor)
  • Dismissed the Debtor's summons for security for costs (HK$560,000) with costs