THE JOINT AND SEVERAL TRUSTEES OF THE PROPERTY OF YEUNG WING SING v. YEUNG WING SING (A BANKRUPT) AND ANOTHER

THE JOINT AND SEVERAL TRUSTEES OF THE PROPERTY OF YEUNG WING SING v. YEUNG WING SING (A BANKRUPT) AND ANOTHER

The court rejected the Respondents' claim of a common intention constructive trust (no credible agreement and no detrimental reliance); payments did not demonstrate entitlement; the Transfer occurred within two years of adjudication and involved no consideration and therefore constituted a transaction at an undervalue under s.49(3)(c) which the court set aside; costs ordered (order nisi) against the estate.

Citation
[2021] HKCFI 2018
Parties
Applicants: THE JOINT AND SEVERAL TRUSTEES OF THE PROPERTY OF YEUNG WING SING; 1st Respondent: YEUNG WING SING (a bankrupt); 2nd Respondent: KWOK LAI AU
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
16 July 2021
Case Number
HCB1174/2019
Procedural Posture
Bankruptcy / Judgment (court of First Instance, 16 July 2021)
Outcome
Transfer declared a transaction at an undervalue and set aside; order nisi for costs to be paid out of the bankrupt's estate
Legal Topics
Transactions at an Undervalue, Common Intention Constructive Trust, Resulting Trust, Set Aside Transfer Under S49
Source Language
EN
Bankruptcy Trusts and Equitable Interests Property Law Transactions at an Undervalue Common Intention Constructive Trust Resulting Trust Set Aside Transfer Under S49

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 11 Party arguments 2 Amounts and remedies 8
Sign in to unlock

Parties

THE JOINT AND SEVERAL TRUSTEES OF THE PROPERTY OF YEUNG WING SING

Applicants

YEUNG WING SING (a bankrupt)

1st Respondent

KWOK LAI AU

2nd Respondent

Procedural Posture

Bankruptcy / Judgment (court of First Instance, 16 July 2021)

Legal Issues

  1. 1 Whether the Transfer was a transaction at an undervalue under s.49(3)(c) of the Bankruptcy Ordinance
  2. 2 Whether a common intention constructive trust existed such that the 2nd Respondent held a 50% beneficial interest prior to the Transfer
  3. 3 Whether a resulting trust arose from payment of the deposit and, if so, in what proportion

Ratio Decidendi

The court rejected the Respondents' claim of a common intention constructive trust (no credible agreement and no detrimental reliance); payments did not demonstrate entitlement; the Transfer occurred within two years of adjudication and involved no consideration and therefore constituted a transaction at an undervalue under s.49(3)(c) which the court set aside; costs ordered (order nisi) against the estate.

Court Disposition

Transfer declared a transaction at an undervalue and set aside; order nisi for costs to be paid out of the bankrupt's estate

Orders

  • Declaration that the Transfer was a transaction at an undervalue under s.49(3)(c) of the Bankruptcy Ordinance and that it be set aside
  • Order nisi that the Trustees' costs be paid out of the estate of Mr Yeung with certificate for two counsel