RE: CHAN CHUN LAM t/a Kwok Lam Trading Development Co. and EX PARTE: OFFICIAL RECEIVER

RE: CHAN CHUN LAM t/a Kwok Lam Trading Development Co. and EX PARTE: OFFICIAL RECEIVER

The court found on the evidence that Mr. Chan's post-commencement conduct was unsatisfactory — giving a guarantee while an undischarged bankrupt, acting as director and incorporating a company after the receiving order, failing to resign and signing annual returns, failing to disclose an interest in a substantial Shenzhen company and failing to keep the Trustee informed — his explanations were not credible; accordingly the court exercised its discretion under s.30A to suspend automatic discharge for the maximum period of four years, postponing discharge until 20 February 2005.

Citation
RE: CHAN CHUN LAM t/a Kwok Lam Trading Development Co. and EX PARTE: OFFICIAL RECEIVER
Parties
Applicant/trustee: Official Receiver (Trustee); Bankrupt/respondent: Chan Chun Lam trading as Kwok Lam Trading Development Company
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
8 June 2001
Case Number
HCB287/1996
Procedural Posture
Bankruptcy (hcb 287 of 1996) / Application Under S.30 a to Object to Automatic Discharge (hearing and Decision)
Outcome
Automatic discharge suspended for 4 years; bankrupt shall not be discharged until 20 February 2005.
Legal Topics
Automatic Discharge, Suspension of Discharge, Unsatisfactory Conduct, Directorship of Undischarged Bankrupt, Failure to Disclose Assets, Guarantee by Undischarged Bankrupt, Duty to Cooperate With Trustee
Source Language
EN
Bankruptcy Law Companies Law Insolvency/commercial Law Automatic Discharge Suspension of Discharge Unsatisfactory Conduct Directorship of Undischarged Bankrupt Failure to Disclose Assets +2 more

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Parties

Official Receiver (Trustee)

Applicant/trustee

Chan Chun Lam trading as Kwok Lam Trading Development Company

Bankrupt/respondent

Procedural Posture

Bankruptcy (hcb 287 of 1996) / Application Under S.30 a to Object to Automatic Discharge (hearing and Decision)

Legal Issues

  1. 1 Whether the bankrupt's conduct before or after commencement of bankruptcy was unsatisfactory under s.30A(4)(d) to justify suspension of automatic discharge
  2. 2 Whether giving a guarantee, acting as director and failing to disclose interests/assets and contact details amount to unsatisfactory conduct warranting delay of rehabilitation

Ratio Decidendi

The court found on the evidence that Mr. Chan's post-commencement conduct was unsatisfactory — giving a guarantee while an undischarged bankrupt, acting as director and incorporating a company after the receiving order, failing to resign and signing annual returns, failing to disclose an interest in a substantial Shenzhen company and failing to keep the Trustee informed — his explanations were not credible; accordingly the court exercised its discretion under s.30A to suspend automatic discharge for the maximum period of four years, postponing discharge until 20 February 2005.

Court Disposition

Automatic discharge suspended for 4 years; bankrupt shall not be discharged until 20 February 2005.

Orders

  • Suspend automatic discharge of Chan Chun Lam for 4 years; he shall not be discharged until 20 February 2005
  • No order as to costs (Trustee did not seek costs)