RE CHOW KAI WENG

Parties

Procedural Posture

Bankruptcy – Interim Order Application Under Bankruptcy Ordinance (cap.6) Ss.20 and 20 a / Adjourned Hearing and Decision on IO Application and Associated Summonses (dispositive Ruling)

Legal Issues

1. 1 Whether the Unless Order required qualitative compliance by the Nominee (independent investigation and verification) or was merely a time order
2. 2 Whether the Nominee carried out independent investigation and verification of the Debtor's statement of assets and liabilities as required by the Unless Order
3. 3 Whether the Debtor breached the Unless Order and, if so, whether relief from the sanction of dismissal should be granted

Ratio Decidendi

The court found the Unless Order expressly required the Nominee to carry out independent investigation and verification of the Debtor's statement of assets and liabilities; the 2nd Nominee's Report disclosed reliance on the Debtor's unverified assertions and outstanding requested information, failed to demonstrate independent verification, and thus amounted to non‑compliance with the Unless Order. No application for relief from the specified sanction was made and the court declined to exercise discretion to grant relief because the non‑compliance was not substantial and the Nominee's independent verification is essential; therefore the sanction of dismissal of the IO Application must take...

Court Disposition

Debtor's Interim Order Application dismissed for breach of paragraph 1 of the Unless Order requiring independent investigation and verification; no relief from sanction granted; ancillary summonses not decided as substantive matters; costs to Petitioning Creditor to be summarily assessed under an order nisi.

Orders

• Debtor's IO Application dismissed for breach of paragraph 1 of the Unless Order
• No order as to the Creditor's Discovery Summons and EoT Summons (including as to costs)