RE: LAI KWOK MAN and EX PARTE: THE HONGKONG AND SHANGHAI BANKING CORPORATION LTD.

RE: LAI KWOK MAN and EX PARTE: THE HONGKONG AND SHANGHAI BANKING CORPORATION LTD.

Debtor failed to establish a bona fide dispute on substantial grounds: his signature was admitted, documentary evidence (facility letter and guarantee) and credible bank evidence showed an unlimited guarantee and proper practice; contractual clauses permitted the bank to release or deal with co‑guarantors and to vary facilities without discharging guarantors; no evidence bank had notice of undue influence or misrepresentation sufficient to set aside the guarantee; therefore bankruptcy order warranted.

Citation
RE: LAI KWOK MAN and EX PARTE: THE HONGKONG AND SHANGHAI BANKING CORPORATION LTD.
Parties
Petitioner: The Hongkong and Shanghai Banking Corporation Limited; Debtor: Lai Kwok Man
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
16 October 2000
Case Number
HCB2318/1999
Procedural Posture
Bankruptcy Petition / Judgment
Outcome
Bankruptcy Order made against the Debtor (Lai Kwok Man)
Legal Topics
Undue Influence, Misrepresentation, Suretyship, Statutory Demand, Independent Legal Advice, Release of Co Guarantor, Code of Banking Practice Compliance, Variation of Liability
Source Language
EN
Bankruptcy Contract Guarantee Equity Banking Law Undue Influence Misrepresentation Suretyship +5 more

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Parties

The Hongkong and Shanghai Banking Corporation Limited

Petitioner

Lai Kwok Man

Debtor

Procedural Posture

Bankruptcy Petition / Judgment

Legal Issues

  1. 1 Whether there is a bona fide dispute on substantial grounds as to the debt secured by the guarantee
  2. 2 Whether the 2nd Guarantee was validly signed and dated by the Debtor
  3. 3 Whether misrepresentation by bank staff or by co-guarantor vitiates the guarantee

Ratio Decidendi

Debtor failed to establish a bona fide dispute on substantial grounds: his signature was admitted, documentary evidence (facility letter and guarantee) and credible bank evidence showed an unlimited guarantee and proper practice; contractual clauses permitted the bank to release or deal with co‑guarantors and to vary facilities without discharging guarantors; no evidence bank had notice of undue influence or misrepresentation sufficient to set aside the guarantee; therefore bankruptcy order warranted.

Court Disposition

Bankruptcy Order made against the Debtor (Lai Kwok Man)

Orders

  • Bankruptcy Order against Lai Kwok Man
  • Costs to be paid from the Debtor's estate