THE JOINT AND SEVERAL TRUSTEES OF THE PROPERTY OF CHAU CHAM WONG PATRICK, A BANKRUPT v. HIGHMAX OVERSEAS LTD AND OTHERS

THE JOINT AND SEVERAL TRUSTEES OF THE PROPERTY OF CHAU CHAM WONG PATRICK, A BANKRUPT v. HIGHMAX OVERSEAS LTD AND OTHERS

Interlocutory injunction granted restraining respondents from disposing of the disputed properties; respondents were denied free use of the Aberdeen sale proceeds but given a narrow liberty to spend up to HKD 360,000 for reasonable legal advice, representation and maintenance of the Robinson Road properties; respondents ordered to file full affidavit evidence and disclosure within 28 days and to notify and permit joinder applications by the bankrupt's children within 14 days; costs reserved.

Citation
THE JOINT AND SEVERAL TRUSTEES OF THE PROPERTY OF CHAU CHAM WONG PATRICK, A BANKRUPT v. HIGHMAX OVERSEAS LTD AND OTHERS
Parties
Applicants (trustees): The Joint and Several Trustees of the Property of Chau Cham Wong Patrick, a bankrupt; 1st Respondent: Highmax Overseas Limited; 2nd Respondent: Marista Group Limited; 3rd Respondent: Goldwick International Limited; 4th Respondent: Richburg Group Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
10 May 2013
Case Number
HCB549/2012
Procedural Posture
Bankruptcy Proceedings / Interlocutory Injunction and Directions Hearing/decision
Outcome
Interlocutory injunction granted with conditions and directions; limited provision made from sale proceeds for expenses; disclosure and joinder directions ordered; costs reserved.
Legal Topics
Avoidance of Dispositions, Beddoe Order (trustee Protection), Mareva Injunction, Use of Trust/corporate Funds for Legal Costs, Joinder of Parties
Source Language
EN
Bankruptcy Trusts and Equity Injunctions Civil Procedure Company Law Avoidance of Dispositions Beddoe Order (trustee Protection) Mareva Injunction +2 more

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 4 Authorities cited 3 Party arguments 2 Amounts and remedies 5
Sign in to unlock

Parties

The Joint and Several Trustees of the Property of Chau Cham Wong Patrick, a bankrupt

Applicants (trustees)

Highmax Overseas Limited

1st Respondent

Marista Group Limited

2nd Respondent

Goldwick International Limited

3rd Respondent

Richburg Group Limited

4th Respondent

Procedural Posture

Bankruptcy Proceedings / Interlocutory Injunction and Directions Hearing/decision

Legal Issues

  1. 1 Whether transfers of properties were held on trust for the bankrupt or were bona fide transfers
  2. 2 Whether respondents may use proceeds of sale (Aberdeen sale) to fund legal costs and maintenance
  3. 3 Whether respondents made full and frank disclosure of alternative means/funds

Ratio Decidendi

Interlocutory injunction granted restraining respondents from disposing of the disputed properties; respondents were denied free use of the Aberdeen sale proceeds but given a narrow liberty to spend up to HKD 360,000 for reasonable legal advice, representation and maintenance of the Robinson Road properties; respondents ordered to file full affidavit evidence and disclosure within 28 days and to notify and permit joinder applications by the bankrupt's children within 14 days; costs reserved.

Court Disposition

Interlocutory injunction granted with conditions and directions; limited provision made from sale proceeds for expenses; disclosure and joinder directions ordered; costs reserved.

Orders

  • Interlocutory injunction granted in terms of the trustee in bankruptcy summons, restraining the respondents from disposing of the Robinson Road properties and related assets
  • Liberty for respondents to spend up to HKD 360000 from the Aberdeen sale proceeds for reasonable legal advice and representation and for maintenance of the Robinson Road properties