RE YU SHUN LEUNG GRADY

RE YU SHUN LEUNG GRADY

Annulment granted under s33 because provable debts were secured by the third party fund; no statutory interest was ordered because evidence did not establish a surplus from which interest could be paid and the Official Receiver accepted the valuation showing insufficiency; Petitioning Creditor is not entitled to costs for pursuing the statutory interest claim and is limited to party-and-party costs for the annulment (no indemnity), and Official Receiver's scale fees are remitted with entitlement only to actual time costs.

Citation
RE YU SHUN LEUNG GRADY
Parties
Bankrupt/applicant: Krzysztof Marszalek; Bankrupt/applicant: Yu Shun Leung Grady; Petitioning Creditor: Standard Chartered Bank (Hong Kong) Limited; Official Receiver and Trustee: Official Receiver and Trustee
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
22 May 2012
Case Number
HCB10951/2009
Procedural Posture
Bankruptcy Annulment Application / Hearing and Decision (annulment Granted)
Outcome
Annulment granted; bankruptcy orders annulled; petitions dismissed
Legal Topics
Annulment Under Section 33 Bankruptcy Ordinance, Leave to Act as Director Under Companies Ordinance S156 (stayed), Statutory Interest Under Ss38(9) and 71 Bankruptcy Ordinance, Remission of Trustee Fees Under S114 Bankruptcy Ordinance, Costs Orders and Indemnity Vs Party and Party
Source Language
EN
Bankruptcy Company Law Civil Procedure Costs Annulment Under Section 33 Bankruptcy Ordinance Leave to Act as Director Under Companies Ordinance S156 (stayed) Statutory Interest Under Ss38(9) and 71 Bankruptcy Ordinance Remission of Trustee Fees Under S114 Bankruptcy Ordinance +1 more

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Parties

Krzysztof Marszalek

Bankrupt/applicant

Yu Shun Leung Grady

Bankrupt/applicant

Standard Chartered Bank (Hong Kong) Limited

Petitioning Creditor

Official Receiver and Trustee

Official Receiver and Trustee

Procedural Posture

Bankruptcy Annulment Application / Hearing and Decision (annulment Granted)

Legal Issues

  1. 1 Whether statutory interest under s71 is payable (is there a surplus)
  2. 2 Whether Petitioning Creditor is entitled to costs for pursuing statutory interest and whether on indemnity basis
  3. 3 Whether the third party fund is linked to the bankrupts' estate

Ratio Decidendi

Annulment granted under s33 because provable debts were secured by the third party fund; no statutory interest was ordered because evidence did not establish a surplus from which interest could be paid and the Official Receiver accepted the valuation showing insufficiency; Petitioning Creditor is not entitled to costs for pursuing the statutory interest claim and is limited to party-and-party costs for the annulment (no indemnity), and Official Receiver's scale fees are remitted with entitlement only to actual time costs.

Court Disposition

Annulment granted; bankruptcy orders annulled; petitions dismissed

Orders

  • Bankruptcy orders made against Krzysztof Marszalek and Yu Shun Leung Grady are annulled
  • The bankruptcy petitions presented against them are dismissed